Defense 2026-11-14

Analysts Weigh Leonardo Replacing Airbus as Indonesia's Military Aviation Partner

A CNBC Indonesia analysis argues the decades-long Airbus partnership is entering difficult years and that Italy's Leonardo - electronics and C4ISR heavy - is gaining ground; neither government has confirmed a shift.

A CNBC Indonesia analysis published on 13 November examines whether Indonesia's military aviation supply relationship, anchored with Airbus since 1978, is giving way to Italy's Leonardo. The piece connects the question to the wider warming of the Indonesia-Italy defence corridor, exemplified by the Fincantieri-Republikorp naval shipbuilding joint venture signed earlier this month. Leonardo's portfolio - defence electronics, sensors, and naval combat systems - is more software- and electronics-intensive than airframe manufacturing.

The article is an opinion analysis rather than confirmed news: neither Indonesia's Defence Ministry, PTDI, Leonardo nor Airbus has announced any change in supplier relationships. If a shift were eventually confirmed, the practical consequence would be a different offset and technology-transfer profile for Indonesian industry, tilting toward electronics, C4ISR integration, and technical documentation - areas where local systems integrators typically find more entry points than in airframe assembly.