Boeing gambles massive stake on F-15EX build in Indonesia.
In a striking move to secure a major defense contract, Boeing has pledged to produce 85 percent of its advanced F-15EX fighter jets locally in Indonesia if the Southeast Asian nation commits to purchasing the aircraft.
The commitment, announced by Penny Burtt, Boeing’s Southeast Asia president, during a media briefing in Jakarta on April 15, 2025, represents a significant departure from traditional arms deals.
This offer is not merely a business tactic to win over Indonesia’s government; it reflects broader transformations in the global defense industry, where nations increasingly demand technology transfers and local manufacturing as prerequisites for billion-dollar contracts.
As Indonesia weighs its options to modernize its aging air force, Boeing’s proposal raises critical questions about the future of defense partnerships, regional geopolitics, and the risks of sharing cutting-edge technology.
The F-15EX dubbed the Eagle II, is the latest iteration of Boeing’s storied F-15 platform, a twin-engine, all-weather tactical fighter that has been a cornerstone of air superiority since its introduction in the 1970s.
Designed to replace the aging F-15C/D models in the U.S. Air Force, the F-15EX boasts a suite of advanced features that make it one of the most capable 4.5-generation fighters in the world. Its digital fly-by-wire system enhances maneuverability, while an advanced electronic warfare suite provides robust defense against modern threats.
The aircraft’s open mission systems architecture allows for rapid integration of new technologies, ensuring adaptability in evolving combat environments. With a maximum speed of Mach 2.5, a combat range of approximately 1,200 nautical miles, and the ability to carry up to 29,500 pounds of payload across 23 weapon stations, the F-15EX is a versatile platform for both air-to-air and air-to-ground missions.
Its conformal fuel tanks extend its operational reach, and its compatibility with hypersonic weapons positions it as a bridge to next-generation warfare. Unlike stealth-focused fifth-generation fighters like the F-35, the F-15EX prioritizes raw power, payload capacity, and cost-effectiveness, making it an attractive option for nations seeking a balance between capability and affordability.
Indonesia’s interest in the F-15EX, which would be designated F-15IDN if acquired, stems from its urgent need to modernize its air force. The country’s current fleet, a mix of aging Russian Su-27 and Su-30 jets, British Hawk 209s, and American F-5 Tigers, struggles to meet the demands of securing a vast archipelago of over 17,000 islands.
In August 2023, Indonesia signed a memorandum of understanding with Boeing for the potential purchase of 24 F-15EX jets, a deal valued at up to $13.9 billion, according to the U.S. Defense Security Cooperation Agency. The agreement, signed during a visit by then-Defense Minister Prabowo Subianto to Boeing’s St. Louis facility, marked a significant step toward strengthening U.S.-Indonesia defense ties.
However, the deal remains contingent on government approval and faces challenges, including recent U.S. tariffs on Indonesian imports announced earlier this year, which could strain bilateral trade relations.
Boeing’s promise to localize 85 percent of F-15EX production is a strategic response to Indonesia’s defense procurement policies, which prioritize local industry involvement under the IDKLO [Indigenous Defense Capability and Offset] scheme.
This commitment involves integrating Indonesian companies, such as state-owned PT Dirgantara Indonesia, into the fighter jet’s supply chain, as well as providing training, maintenance, and operational support.
“Should Indonesia choose [to purchase] the F-15EX, Boeing will deliver on its 85 percent local content and offset commitments, aligned with national defense and industrial priorities,” Burtt stated during the Jakarta briefing, as reported by The Jakarta Post. This approach aligns with Indonesia’s broader goal of developing its domestic defense industry, a priority for President Prabowo, who has championed self-reliance in military capabilities since taking office.
The offer of localized production is emblematic of a seismic shift in the global defense market. Nations like India, Turkey, and now Indonesia are no longer content to be mere buyers of advanced weaponry; they demand a stake in the production process, seeking to build their own industrial capacity and reduce dependence on foreign suppliers.
For Boeing, this trend presents both opportunities and risks. By agreeing to manufacture most of the F-15EX in Indonesia, Boeing could secure a foothold in one of Southeast Asia’s largest markets and strengthen its position against competitors like France’s Dassault, which has already secured a deal to supply Indonesia with 42 Rafale fighters.
However, sharing proprietary technology and manufacturing know-how carries long-term risks. The transfer of expertise could empower Indonesian firms to develop their own aerospace capabilities, potentially creating future competitors.
A historical parallel can be drawn with China, which began producing licensed versions of Russia’s Su-27 in the 1990s and later developed its own advanced fighters, such as the stealth-capable J-20. While Indonesia’s industrial base is not yet on par with China’s, the precedent underscores the potential for technology transfers to reshape global defense dynamics.
Indonesia’s approach to modernizing its air force reflects a calculated strategy to diversify its defense partnerships and avoid over-reliance on any single supplier. In addition to the F-15EX negotiations, Indonesia is awaiting delivery of French Rafale jets, a $8.1 billion deal signed in 2022, and is a partner in South Korea’s KF-21 Boramae program, a next-generation fighter project that has faced funding challenges.
The country also maintains a small fleet of Russian-built aircraft, and as recently as January 2025, Russia’s ambassador to Indonesia indicated that a deal for Su-35 jets remains under consideration. This multi-pronged approach serves both military and diplomatic purposes.
By engaging with the United States, France, South Korea, and Russia, Indonesia maximizes its negotiating leverage and insulates itself against geopolitical risks, such as sanctions or supply chain disruptions. “The choice for Jakarta hinges on reliability, cost, and politics, not just performance,” noted an industry analyst in a March 2025 report, highlighting the complex calculus behind Indonesia’s defense acquisitions.
The F-15EX’s capabilities make it a compelling option for Indonesia’s strategic needs. The aircraft’s long range and heavy payload capacity are well-suited to patrolling Indonesia’s expansive maritime borders, including the contested waters near the Natuna Islands, where China’s naval presence has raised tensions.
Equipped with anti-ship missiles, the F-15EX could serve as a deterrent against maritime incursions, complementing Indonesia’s growing naval capabilities. Compared to competitors, the F-15EX holds distinct advantages. France’s Rafale, while versatile and equipped with advanced sensors, has a shorter range and lower payload capacity.
Russia’s Su-35, another contender, offers comparable performance but is hampered by concerns over reliability and sanctions-related maintenance issues. China’s J-20, a fifth-generation stealth fighter, poses a regional threat but is not available for export, underscoring the F-15EX’s unique position as a high-performance, exportable platform.
For Indonesia, the F-15EX represents a balance of cutting-edge technology and operational flexibility, capable of addressing both current and emerging threats.
Historically, the F-15 platform has a proven track record, with over 100 air-to-air victories and no combat losses, a legacy that bolsters its appeal. Since its first flight in 1972, the F-15 has evolved through multiple variants, serving in the air forces of nations like Israel, Japan, and Saudi Arabia.
The F-15EX builds on this heritage with modern upgrades, including a glass cockpit, AESA radar, and compatibility with future weapons systems. Its operational history provides a stark contrast to newer, untested platforms like South Korea’s KF-21, which is still in development, or Russia’s Su-57, which has seen limited combat deployment.
For Indonesia, the F-15EX offers a battle-tested foundation with room for customization, a critical factor in a region where air superiority is increasingly contested.
Boeing’s offer comes at a time when the company is navigating significant challenges. The aerospace giant has faced production delays with the F-15EX, with only a handful delivered to the U.S. Air Force by early 2025, according to industry reports.
Financially, Boeing reported a $3.8 billion loss in the fourth quarter of 2024, compounded by a machinists’ strike and ongoing scrutiny over safety issues in its commercial aviation division. The Indonesia deal, if finalized, could provide a much-needed boost, reinforcing Boeing’s position in the Indo-Pacific. However, external pressures, such as U.S. tariffs on Indonesian imports announced in April 2025, could complicate negotiations.
These tariffs, part of a broader trade policy under President Donald Trump, have raised concerns about Indonesia’s ability to finance the $13.9 billion deal, as noted in a recent analysis by BulgarianMilitary.com. Jakarta has responded by proposing to purchase $19 billion worth of U.S. products to offset trade imbalances, a move that could pave the way for the F-15EX contract.
The geopolitical implications of the deal extend beyond U.S.-Indonesia relations. As a key member of ASEAN, Indonesia plays a pivotal role in the Indo-Pacific, a region marked by competing interests from the United States, China, and regional powers like Australia and India.
The F-15EX deal could strengthen U.S. influence in Southeast Asia, countering China’s growing assertiveness in the South China Sea. However, Indonesia’s commitment to non-alignment means it will likely balance this partnership with continued engagement with other suppliers.
For ASEAN neighbors like Vietnam and Malaysia, which are also modernizing their air forces, Indonesia’s acquisition of advanced fighters could prompt a regional arms race, albeit one tempered by economic constraints. Australian and Singaporean officials, both of whom operate U.S.-made aircraft, will be watching closely, wary of any shift in Indonesia’s military capabilities that could alter the regional balance.
Boeing’s promise of localized production also raises questions about Indonesia’s industrial capacity. PT Dirgantara Indonesia has experience assembling smaller aircraft and components, but scaling up to produce a sophisticated fighter like the F-15EX would require significant investment in infrastructure, training, and quality control.
Skeptics argue that Boeing’s 85 percent local content pledge may be more aspirational than achievable, a marketing tactic to outmaneuver competitors. “We haven’t heard any specific requests from Indonesia,” Burtt remarked when asked about trade terms, suggesting that the details of localization remain fluid.
For Indonesia, the success of this initiative will depend on its ability to translate Boeing’s commitment into tangible economic and technological gains, rather than remaining a junior partner in the production process.
The broader implications of this deal extend to the future of defense manufacturing. If Boeing can deliver on its promise, the F-15EX deal could serve as a model for other nations seeking localized production, reshaping how aerospace giants structure their contracts.
Success in Indonesia could bolster Boeing’s reputation as a flexible partner, opening doors to markets in the Middle East, Eastern Europe, and beyond. Conversely, failure to meet localization targets could damage Boeing’s credibility, particularly in a region where trust in Western suppliers is already strained by past delays and cost overruns. For Indonesia, the stakes are equally high.
A robust partnership with Boeing could elevate its defense industry, positioning it as a regional hub for aerospace manufacturing. Yet, the challenges of integrating a diverse fleet of American, French, and South Korean aircraft could strain its military logistics, raising questions about long-term sustainability.
Boeing’s offer to Indonesia is a bold gamble, one that reflects the evolving realities of the global defense market. By prioritizing localization, the company is adapting to the demands of emerging powers like Indonesia, which seek not just weapons but the means to produce them.
The F-15EX, with its unmatched versatility and combat pedigree, is a fitting centerpiece for this ambition, offering Indonesia a chance to project power across its vast archipelago. Yet, the deal’s success hinges on overcoming significant hurdles, from trade tensions to industrial limitations.
As Jakarta weighs its options, the world watches, wondering whether this partnership will redefine the rules of defense cooperation or become another cautionary tale of overpromising in a high-stakes game.
Can Indonesia leverage this opportunity to become a new player in the global aerospace arena, or will the complexities of modern defense procurement ground its ambitions before they take flight?