Indonesia has signed a Letter of Intent (LOI) with KNDS France, an artillery systems and ammunitions company, to acquire more Caesar artillery systems and 155mm ammunition.
This LOI aims to bolster the industrial cooperation between the two parties by facilitating the transfer of knowledge, technology, and the local assembly of artillery units.
“We acknowledge the strong support from both Indonesian and French MoD through the recent Letter of Intent signed during the French President Emmanuel Macron visit in Jakarta,” KNDS said in a statement.
The was agreement was initiated following a previous LOI for potential arm deliveries, signed during French President Emmanuel Macron’s state visit to Indonesia in May 2025, which was part of his broader Indo-Pacific tour.
KNDS has already supplied Indonesia with 56 Caesar systems, which equip three battalions of the Indonesian National Armed Forces (TNI), positioning the country as the third-largest global customer for Caesar and the largest in Asia.
On a LinkedIn post, KNDS France said: “The bilateral relationship between France and Indonesia is strengthened by the signing of a letter of intent with Kemhan during the French President’s visit to Jakarta. This agreement includes additional Caesar systems and 155mm ammunition, with a strong focus on local production, sovereignty and operational efficiency.”
This collaboration falls under the larger scope of the Indonesian-French Defence Cooperation Agreement signed by the two countries in August 2021.
It is expected to yield reciprocal advantages and a significant return on investment for Indonesia, while enhancing national sovereignty, said KNDS.
The partnership is also designed to support Indonesia’s goals for self-reliance, ensuring a substantial level of local production along with a significant transfer of high-value technology. It aims to develop expertise and capabilities within Indonesia while maximising the operational readiness of its defence systems.
At Indo Defence 2025, KNDS France and various entities from Indonesia’s defence industry base finalised several memorandums of understanding (MoUs). These agreements encompass a future partnership with PT Pindad in artillery and large calibre ammunition production, including the transfer of manufacturing capabilities to local facilities.
Collaboration with PT Dirgantara is also part of the MoUs, focusing on equipping Indonesian helicopters with 20mm cannons. Additionally, an agreement with PT SSE aims to create a counter-UAV version of the indigenous P2-TIGER.
Furthermore, cooperation with Balitbang will delve into research and development concerning land defence systems.
