How is the Indonesia-Japan defence partnership taking shape?
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Indonesia's naval modernisation and cooperation with Japan presents significant opportunities for Indo-Pacific nations.
As Indonesia plans to double its defence spending by 2029, DSEI Japan 2025 is a crucial platform for cementing opportunities in naval modernisation and maritime security as it provides unprecedented levels of access into the Japanese and wider Asia-Pacific market.
An archipelago country, Indonesia has planned a 22% defence budget increase to IDR165.2 trillion (USD10.6 billion) in 2025. This follows a decade of underinvestment, with priorities including naval upgrades to secure 17,000+ islands and aerial capabilities to monitor contested airspace.
As part of its modernisation drive, Indonesia has acquired two offshore patrol vessels (OPVs) from Italian shipbuilder Fincantieri. Indonesia is also expanding its defence relationships with France and Turkey, from whom it has procured Rafale fighter jets (from Dassault Aviation) and Anka drones (from Turkish Aerospace Industries), respectively.
Its partnership with Japan, in particular, is strengthening, with the two countries cooperating on a new frigate, among others.
Japan and Indonesia expand defence cooperation
Several recent developments demonstrate Indonesia's expanding defence relationship with Japan:
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Joint frigate development: Japan and Indonesia are discussing the joint development of Mogami-class frigates for the Japan Maritime Self-Defense Force and Indonesia. Proposals involve building four frigates in Japan and four in Indonesia.
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Maritime security collaboration: The countries have agreed to establish a forum for defence practitioners to address issues related to maritime security, including cooperation on defence equipment and technology transfer.
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OPV grant: The Indonesian Coast Guard (or BAKAMLA) has signed an agreement for the construction of an OPV, which will be built by Mitsubishi Shipbuilding Co. and fully funded by Japan through the Japan International Cooperation Agency.
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High-speed patrol boats: Japan has pledged to provide Indonesia with two high-speed patrol boats through its Official Security Assistance programme.
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Defence consultations: The defence ministers of both countries have agreed to establish consultations on maritime security, including discussions on defence equipment and technology cooperation.
Indonesia’s defence strategy
As part of its modernisation efforts, Indonesia is centralising defence and foreign policy decision-making, moving away from the previous approach where various ministries managed different aspects of security policy. The intention is to build defence partnerships with multiple nations to preserve diplomatic flexibility.
The Minimum Essential Force (MEF) programme, initiated in 2010, aims to modernise the armed forces by developing a green-water navy, upgrading air combat capabilities and creating more mobile land forces.
However, funding constraints have pushed its completion beyond the original 2024 target.
Beyond the MEF, the navy has drafted two major plans: its Strategic Plan for 2025-2029 and a longer-term Force Development Posture plan running to 2044. These aim to guide naval development and include goals to strengthen the transport fleet and enhance troop transport capabilities. The National Defense Council was established in 2024 to oversee these efforts.
Explore potential partnerships at DSEI Japan 2025
DSEI Japan 2025 is the forum where international companies can understand Japan's evolving defence posture, build relationships with key stakeholders and develop informed strategies for supporting Japan's defence modernisation efforts. With a large percentage of attendees from the Indo-Pacific region and strong representation from Japanese small and medium enterprises (48% of industry attendees), DSEI Japan 2025 provides an ideal environment for exploring potential industrial partnerships and understanding the local defence industrial base.