In August of 1986, Indonesia signed a letter of agreement for 12 F-16A/B Block 15 OCU (Operational Capability Upgrade) aircraft. They were intended to replace some of the aging MiG-21 fighters and other Soviet types that were in service in Indonesia.
The first F-16 was delivered to the Tentara Nasional Indonesia-Angatan Udara (Indonesian National Army-Air Force) on December 11, 1989. Deliveries were completed in 1990. These aircraft equipped Skwadron Udara 3, based at Ishwahyudi Air Base on the island of Java. This unit had previously operated the OV-10F Bronco, the Broncos being used to reactivate SkU.1.
In November of 1995, Indonesia expressed a need for 64 more F-16s, enough to equip four fighter squadrons. They expressed an interest in the 28 embargoed Pakistani F-16s held in storage at AMARC. A contract was signed in 1996 for nine Block 20 F-16s. However, negotiations between the USA and Indonesia for the purchase of these planes were postponed in June of 1997 because of Congressional objections to Indonesia's human rights record following riots in June of 1996.
A purchase of nine more F-16 aircraft was cancelled in favor of 12 Su-30KI aircraft, however this order was later also cancelled due to the Asian Financial Crisis of 1997. The USA imposed an arms embargo on Indonesia which resulted in the F-16 squadrons being grounded due to a lack of spare parts. The Indonesian AF wanted to buy 6 new F-16C/Ds, but the USA counter-offered up to 24 used F-16C/D Block 25 aircraft, plus 6 spares. The delivery of the first six F-16C/Ds took place in 2014, with the remaining 18 to be delivered by the end of 2015. The Indonesian FMS program is known as Peace Bima-Sena.
87-0713/0720 General Dynamics F-16A Fighting Falcon to Indonesia as TS1605/TS1612 87-0721/0724 General Dynamics F-16B Fighting Falcon to Indonesia as TS1601/TS1604