"continued and yet growing trust in our capabilities across domains," Leonardo chief executive Lorenzo Mariani said.
What Indonesia contracted: twelve M-346F Block 20 aircraft
On 21 July, Leonardo and its Indonesian partner PT ESystem Solutions signed a contract with Indonesia’s Ministry of Defence for 12 M-346F “Block 20” light combat aircraft, a deal announced at the Farnborough International Airshow. The agreement follows a letter of intent signed in February and is worth close to one billion euros. Leonardo expects the first aircraft to be delivered from 2030.
Block 20: trainer turned networked light fighter
The M-346 is normally described as a twin‑engine advanced jet trainer; the F (fighter) variant carries radar and weapons so it can also serve as a light combat aircraft. The Block 20 configuration adds a Large Area Display cockpit, an active electronically scanned array radar, a Link 16 data link and electronic countermeasures. Those additions move the type beyond a pure training role and enable networked air‑to‑air and air‑to‑ground missions.
Leonardo’s chosen radar for the package is the ITAR‑free Grifo E600, a selling point the source highlights because it provides a sensor free of United States export restrictions. The report notes that, for Indonesia, the Block 20 configuration yields a fighter described as more capable than the country’s older F‑16 Block 52 aircraft fitted with the APG‑68.
Industrial participation: PT ESystem Solutions and local work
PT ESystem Solutions will participate directly in flight testing and qualification of the Grifo E600 using its own flight test bed, deepening Indonesia’s industrial role in the program. The contract includes localization of support, maintenance, overhaul and training inside Indonesia, together with human capital development—measures aimed at building sustainment and technical capacity domestically rather than simply importing finished aircraft.
Operational role and fleet impact for the Indonesian air arm
In service with Indonesia, the M‑346F Block 20 will perform lead‑in fighter training as well as light combat and tactical duties. The type is intended to replace surviving BAE Systems Hawk Mk 109/209 trainers that Indonesia received in the 1990s. The broader purchase is described as part of an ongoing Indonesian effort to modernize its air arm, which the source says has drawn on advanced fighters and trainers from several suppliers.
What Indonesia, Leonardo/PT ESystem, and the Indonesian Navy will do
- Indonesia’s Ministry of Defence and the air arm will take delivery from 2030 and use the aircraft for both training and light combat roles, while retiring older Hawk trainers.
- Leonardo and PT ESystem Solutions will carry out flight testing and qualification of the Grifo E600 locally, and implement localization of support, maintenance, overhaul and training inside Indonesia—expanding industrial cooperation beyond sales into sustainment and human capital development.
- The Indonesian Navy and Leonardo also signed a letter of intent the same day for AW149 naval helicopters to be used for search and rescue and disaster relief, together with plans to build local technical assistance, maintenance and training for that program.
Leonardo framed the package as a further step into the Asia‑Pacific defence market: the purchase makes Indonesia the 23rd operator of the M‑346 and the first customer in Asia to take the Block 20 standard. Leonardo pointed to the Block 20 reaching Asia only eight months after the standard’s first order as evidence of rising global demand, and said it intends to expand its contribution in the country.
The contract ties capability, industrial participation and training into a single program: a near‑billion‑euro acquisition, aircraft deliveries from 2030, and local testing and sustainment commitments. For Indonesia, the deal offers a platform that the source describes as lifting both training realism and light combat capability; for Leonardo and PT ESystem, it locks in a role that spans sales, testing and localized sustainment. The next concrete steps named in the source are flight testing and qualification of the Grifo E600 and the start of deliveries from 2030—milestones that will determine whether the Block 20 becomes the reference M‑346 standard across the region as Leonardo expects.
