LIG Nex1 signed a cooperation agreement with Indonesia’s state-owned aerospace manufacturer PT Dirgantara Indonesia, marking the South Korean defense contractor’s latest push into Southeast Asia’s expanding military market.
The memorandum of understanding, signed June 12 at the Indo Defence exhibition in Jakarta, focuses on precision-guided weapons and surveillance equipment, according to the Korean company’s announcement. The partnership includes plans for joint promotions and potential local production.
The tie-up comes as Indonesia’s defense market is projected to grow from $9.52 billion in 2025 to $10.97 billion by 2030, driven by the government’s military modernization efforts. Indonesia has announced plans to invest $125 billion over three years in defense upgrades, with nearly two-thirds allocated for new equipment.
LIG Nex1’s agreement with PT Dirgantara Indonesia represents the company’s second major Indonesian partnership following a 2023 deal with private defense firm Republikorp focused on anti-tank missile technology. The Korean contractor established an Indonesian office in 2013 and has supplied communication equipment to the country’s military since 2006.
PT Dirgantara Indonesia, founded in 1976, produces transport and patrol aircraft for Indonesia’s military and has delivered over 470 aircraft to more than 50 customers globally. The state-owned company faces financial pressures, having required government bailouts to remain operational.
The partnership timing coincides with Indonesia’s broader defense industrial strategy to develop local manufacturing capabilities while attracting foreign technology partners.
