MKU Limited, India's leading defence technology company, and PT Republik Korpora Indonesia (Republikorp), Indonesia's foremost private defence holding company, have signed a Memorandum of Understanding (MoU) to jointly develop and localise electro-optics manufacturing capabilities within Indonesia. The partnership is structured in alignment with Indonesia's Tingkat Komponen Dalam Negeri (TKDN) — the national local content framework — and marks a significant milestone in the deepening defence industrial cooperation between India and Indonesia.

A Strategic Partnership for the Indo-Pacific Age

Under the MoU, MKU's Netro Optronics division will work with Republikorp to establish a localised production and integration framework for advanced electro-optic systems — encompassing night vision, thermal imaging, multi-sensor fusion platforms, and situational awareness solutions for both soldier and platform applications. The arrangement envisions technology transfer, joint manufacturing, local certification, and the integration of MKU's optronics portfolio into Indonesia's defence ecosystem.

Republikorp, established in 2013 and recognised as Indonesia's largest privately-owned defence industrial holding, brings to the partnership an extensive network of manufacturing facilities and regulatory expertise. The company has recently formalised landmark localisation agreements with global defence majors spanning unmanned aerial systems, guided missiles, and naval platforms — and is now applying the same localisation-driven approach to advanced optronics, further strengthening Indonesia's sovereign defence manufacturing ecosystem.

India's Export Ambition — and MKU's Role in Delivering It

India's defence exports have reached an all-time high of ₹38,424 crore in Financial Year 2025–26 — a 62.66% surge over the previous fiscal — as the nation advances towards its target of ₹50,000 crore in annual defence exports by 2029. Private sector companies, contributing ₹17,353 crore of this record, have become an indispensable pillar of India's export success story.

As India accelerates towards becoming a global defence manufacturing and export hub, industry leaders like MKU are playing a critical role in translating national ambition into tangible outcomes. Through sustained innovation, world-class manufacturing, and a growing international footprint, MKU continues to strengthen India's position as a trusted supplier of advanced defence solutions worldwide.

Anchored in a Growing Bilateral Defence Architecture

The MKU–Republikorp MoU is concluded against a backdrop of rapidly maturing India–Indonesia defence relations. India and Indonesia in November 2025 convened their 3rd Defence Ministers' Dialogue, where both nations agreed to establish a Joint Defence Industry Cooperation Committee encompassing technology transfer, R&D, certification harmonisation, and supply-chain integration. This growing partnership has been further underscored by Indonesia's agreement to procure the BrahMos supersonic cruise missile system, marking a significant milestone in India's defence export journey.

This MoU builds upon this momentum, operationalising bilateral intent at the industrial level and directly contributing to Indonesia's defence self-reliance objectives under its TKDN framework — a policy architecture that mirrors India's own Atmanirbhar Bharat imperative.

Commenting on these developments, Mr. Karan Gupta, VP – International Sales, MKU, said: “This MoU with Republikorp is a defining step in MKU's international expansion and a direct expression of India's capability to be a trusted, long-term defence partner for the Indo-Pacific. Localising our electro-optics portfolio within Indonesia — through TKDN-compliant co-production is a strategic commitment to Indonesia's defence sovereignty and to the deepening of a partnership between two great maritime nations.”

About MKU

MKU Limited is a global defence technology company on a mission to Empower Heroes in the line of duty through smart, future-ready defence solutions that deliver confidence. Headquartered in India, with manufacturing and operational infrastructure across India, the UAE, and a European Centre of Excellence in Germany, MKU is trusted by 230+ armed forces across more than 100 countries.

We develop and manufacture certified smart defence solutions across soldier systems, platform survivability and electro-optics, empowering over 3 million personnel and armouring more than 3,000 platforms worldwide.

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About PT Republikorp (PT Republik Korpora Indonesia)

Established in 2013, Republikorp is Indonesia's largest privately-owned defence industrial holding company, focused on the innovation, localisation, and manufacturing of advanced defence systems spanning AI-enabled drone technology, naval platforms, guided munitions, and land systems. The company serves as Indonesia's primary vehicle for technology transfer and co-production partnerships with leading global defence manufacturers.

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