The Turkish defense industry is changing the rules of the game in the global export arena with a new sales model. The background to the "1 Billion Dollar Frigate" news, which surfaced at the DIMDEX 2026 Fair in Doha, Qatar, has been revealed. The agreement signed between the Turkish shipbuilding consortium TAIS and Qatar-based Barzan Holdings is actually for Indonesia. According to reports, the TCG İzmir and TCG İçel frigates, which were laid down for the Turkish Navy, will be transferred to the Indonesian Navy due to urgent needs.
The MİLGEM Project, the flagship of the Turkish shipbuilding industry, is now anchoring in Indonesia, a giant of South Asia, after Pakistan, Ukraine, and Malaysia. However, this sale goes beyond the usual "government-to-government" (G2G) sales and also involves a strategic financing model.
The $1 billion agreement, signed in Doha on January 19, 2026, and announced by TAIS, was initially perceived as a purchase for the Qatari Navy. However, social media posts by Barzan Holdings and statements from the Qatari Ministry of Defense clarified the equation: Money from Qatar, ships from Türkiye, and operation from Indonesia.
Qatar is financing it, Indonesia will use it.
According to the details of the agreement, Qatari state-owned company Barzan Holdings is acting as the financier (creditor) for Indonesia's "Turkish Frigate" procurement project. In this model, designed to meet the Indonesian Navy's (TNI AL) urgent frigate needs, Türkiye is at the center as the producer.
This strategic move enables Indonesia to overcome its budget constraints, while also proving the Turkish defense industry's ability to generate its own financing model and export. The $1 billion price tag for the two İSTİF-class frigates also confirms the high level of equipment and technological capability of the ships.
Critical Allegation: Are Turkish Navy Ships Being Sold?
According to Naval News and sources at the trade fair, the most noteworthy aspect of the agreement lies in the delivery schedule. Due to Indonesia's immediate demand for the ships, there is talk of altering the route of vessels currently under construction at TAIS shipyards for the Turkish Navy.
These are the 6th and 8th ships of the MİLGEM Program (and the 2nd and 4th ships of the İSTİF class). In other words... TCG İzmir (F-516) And TCG İçel (F-518) The construction processes of the planned frigates have been completed, and they are expected to be exported to Indonesia.
This slot transfer (transfer of production order) is a common practice in the defense industry. Thus, Indonesia will receive its ships much sooner instead of waiting in line for years. The gap created for the Turkish Navy will be filled by the 13th and 14th ships (new İSTİFs) of the MİLGEM program, to be built by TAIS. Considering that 7 frigates are currently under construction simultaneously at TAIS shipyards, this change is seen as opening the door to exports without creating a serious weakness in the Turkish Navy.
İSTİF Sınıfı: %80 Yerlilikle Yüzen Teknoloji Üssü
Endonezya’nın sahip olacağı İSTİF (İ-Sınıfı) fırkateynleri, ADA sınıfı korvetlerin gelişmiş ve boyu uzatılmış versiyonu olarak biliniyor. 113.2 metre boyunda ve 3.000 ton deplasmanındaki bu gemiler, %80’e yaklaşan yerlilik oranıyla Türk Mühendisliğinin de gövde gösterisi niteliğinde.
The domestically produced systems that are likely to be found on the ships are as follows:
- Firepower: Roketsan ATMACA Anti-Ship Missiles.
- Air Defense: ASELSAN GÖKDENİZ Close-in Air Defense System and MİDLAS Vertical Launch System (with HİSAR missiles).
- Sensors: ASELSAN CENK-S AESA Radar and FERSAH Sonar.
- Software: HAVELSAN ADVENT Combat Management System.
Blue Homeland Transcends Borders
The export of 4 MİLGEM ships to Pakistan, the corvettes delivered to Ukraine, and the agreements with Malaysia, followed by the move towards Indonesia, have all propelled Türkiye from a "boutique manufacturer" to a "global player" in the global warship market. The sailing of TCG İzmir and TCG İçel under the Indonesian flag will be the most concrete evidence that the Turkish defense industry is exporting not only products but also strategic partnerships.
