Deliveries of Italian-built jets in Block 20 standard will commence in 2030.
Indonesia has ordered 12 Leonardo M-346F light fighter aircraft, firming a letter of intent signed in February.
Deliveries are due to begin in 2030, with Jakarta taking the aircraft in the latest Block 20 standard.
This features an active electronically scanned array radar, Link 16 data-link, electronic countermeasures and new weapon systems, alongside improved cockpit displays.
Included in the agreement, disclosed on 21 July, is the localisation of a range of support, maintenance, overhaul and training services through an arrangement with PT ESystem Solutions Indonesia.
Jakarta will be the 23rd operator of the M-346, Leonardo says.
Speaking during a Farnborough air show briefing, Leonardo chief executive Lorenzo Mariani said the deal is valued at close to €1 billion ($1.14 billion).
Earlier on 21 July, Leonardo revealed that Indonesia had also signed a letter of intent related to the acquisition of AW149 helicopters for its navy.
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