The United States plans to transfer two dozen refurbished and upgraded F-16 Fighting Falcons to the Indonesian Air Force as part of efforts to strengthen military to-military ties between the two countries.

Deliveries are scheduled to begin in July 2014 as the aircraft are updated with Raytheon’s [RTN] advanced Modular Mission Computer. They will also feature improved radar, avionics and the capability to carry and field more advanced weaponry and sensors, the White House said.

The agreement was announced as President Barack Obama met with his Indonesian counterpart, Bambang Yudhoyono, in Bali.

The transfer of the Block 25 fighters is taking place under a grant approved in August under the Excess Defense Articles (EDA) program administrated by the Pentagon’s Defense Security Cooperation Agency (DSCA). EDA allows defense systems declared as unneeded to be transferred to another country in support of U.S. national security and foreign policy objectives. The grant also includes 28 Pratt and Whitney [UTX] engines.

The agreement marks the largest transfer of military articles between the two countries. Indonesia has agreed to pay for the upgrade work on the F-16s and for the overhaul of the 28 engines. The United States will train pilots and maintenance crews.