This deal is estimated to hold a value of $8.1bn, reported Reuters.
This contract was signed at a ceremony held in Jakarta in the presence of French Armed Forces Minister Florence Parly and Indonesian Defence Minister Prabowo Subianto.
The Rafale aircraft are being procured for the Indonesian National Army Air Force (Tentara Nasional Indonesia Angkatan Udara).
The scope of the contract includes the delivery of aircrew training and logistics support services at several Indonesian air bases.
Under the deal, a training facility with two full-mission simulators will also be provided.
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During the upcoming months, the initial phase of the deal covering six Rafale aircraft will be completed.
Later, the remaining 36 Rafale fighter jets will be handed over either later this year or next year.
Dassault Aviation Chairman and CEO Eric Trappier said: “It is a great honour for Dassault Aviation to see the Rafale join the highly prestigious Tentara Nasional Indonesia Angkatan Udara air force, and I would like to thank the Indonesian authorities for the trust they have placed in us.
“This contract marks the start of a long-term partnership that will see Dassault Aviation rapidly step up its presence in the country. It also demonstrates the strong bond between Indonesia and France and reinforces the position of the world’s largest archipelago as a key power on the international stage.”
The purchase makes Indonesia the second Indo-Pacific country to select the Rafale.
In addition to France, the aircraft is also being acquired by Qatar, Egypt, India, Greece, Croatia, and the UAE.
Last month, Dassault Aviation sent the first six Rafale fighter aircraft to the Tanagra Air Base in Greece for the Hellenic Air Force (HAF).
Separately, Indonesia has requested the US for the sale of 236 F-15ID aircraft and associated equipment, with The Boeing Company serving as the principal contractor.
Approved by the US State Department, the estimated deal value of the foreign military sale stands at $13.9bn.