Following the news that the Indonesian Armed Forces are to procure 42 Rafale fighter jets from Dassault aviation, and have signed a memorandum of understanding (MoU) for submarine research and development (R&D) work and ammunition manufacturing;

Madeline Wild, Associate Defense Analyst at GlobalData, a leading data and analytics company, comments:

“The Franco-Indonesian deals are a significant win for the French defense industry. Australia’s decision to withdraw its plans to procure French-made submarines was a major loss for Naval Group, which would have headed the program. Now, the opportunity to cooperate with another major player in the Indo-Pacific region will reposition the company, as well as France, as a key competitor in the South-East Asian market. The Indonesian military has also expressed its intention to procure two Scorpene-class submarines, which will be both a financially significant contract for Naval Group and a strategically valuable move for Indonesia as China’s presence in the South China Sea grows.

“France’s geopolitical ambitions in the Indo-Pacific region have benefited from another Indonesian deal—the sale of 42 Rafale fighter jets manufactured by Dassault Aviation. This follows the announcement of the sale of Rafale’s to India in December 2021, marking France’s solidification of its position in the market.

“The ramifications of the AUKUS fallout were felt beyond Naval Group and the wider French defense industry, with relationships between the governments of all parties put under strain. As the dust has settled on the events of last Autumn, the growth in French sales to the region will help re-establish the balance of influence in the region: something that will be of particular importance, as controversial Chinese military activities in the Indo-Pacific continue.

“Merely hours after the announcements from France and Indonesia’s talks, the US announced its approval for the foreign military sale of 36 Boeing F-15EX aircraft to Indonesia. This deal is not in direct opposition to the Rafale contract, with Indonesia having previously expressed its desire to procure both aircraft as part of its capability enhancement plans. Reinforcing allied Indo-Pacific states such as Indonesia, will be beneficial for the US in its pivot to the region.”