Indonesia’s recent induction of the Turkish-origin KHAN tactical ballistic missile system marks a pivotal milestone in its ongoing defense modernization efforts. This development not only enhances the Indonesian Army’s strike capability but also signals an accelerating arms race among Southeast Asian countries. The KHAN system’s capability positions Indonesia ahead of many of its ASEAN neighbors in precision-strike capability, a domain traditionally dominated by regional heavyweights like China and India, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Indonesia Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2030,” reveals that the Indonesian government allocated $11.8 billion to its total defense budget in 2025, reflecting a compound annual growth rate (CAGR) of 7.7% from 2021 to 2025. The country’s defense budget is projected to grow at an estimated CAGR of 7.3% during the forecast period, reaching $16.9 billion by 2030. This growth is anticipated to support all of Indonesia’s defense modernization ambitions throughout the forecast period.

The KHAN system, capable of delivering precision strikes up to 280 kilometers, provides Indonesia with a long-range precision strike capability that it previously lacked. Mounted on an 8×8 Tatra vehicle, the system ensures high mobility, allowing for rapid deployment across the diverse geography of the Indonesian archipelago. The mobility aspect of the missile system significantly enhances survivability and complicates adversaries’ prospects for counterattacks. Moreover, the KHAN’s ability to operate in electronically contested environments, leveraging the integrated GPS and GLONASS-aided inertial guidance, ensures high accuracy.

Gone Sai Kiran, Aerospace and Defense Analyst at GlobalData, comments: “The delivery of this missile system comes at a time when the Asia-Pacific (APAC) defense industry is experiencing rapid growth, largely driven by heightened tensions due to China’s assertiveness in the South China Sea and the Indian Ocean. For Indonesia—whose strategic position astride critical maritime chokepoints like the Malacca Strait makes it a key stakeholder—such capabilities are vital for safeguarding its sovereignty and sea lanes.”

This delivery also underscores the deepening defense partnership between Indonesia and Türkiye. As the first foreign operator of the KHAN missile system, Indonesia is looking to diversify its defense procurement sources. Additionally, this acquisition opens avenues for joint development, technology transfer, and potential naval missile acquisitions, such as the Atmaca anti-ship system. This aligns with Jakarta’s long-term strategy of developing a more self-reliant and technologically advanced defense sector.

Kiran concludes: “Indonesia’s induction of the KHAN system is more than a simple procurement; it signals that more countries in Southeast Asia are aiming to acquire advanced missile systems amid rising territorial disputes. This year, the Philippines also received BrahMos missile batteries from India, while Vietnam has expressed interest in purchasing similar missile systems. As territorial disputes and armed conflicts continue to arise in the region, more Southeast Asian countries will likely arm themselves with advanced missile systems throughout this decade.”