Indonesia's development contribution for the Korean next-generation fighter KF-21, a joint development country, has been finalized at 600 billion won, reduced by 1 trillion won from the initial amount.
The Defense Acquisition Program Administration (DAPA) announced on the 13th that it signed a revised 'Basic Agreement on Joint Development' with Indonesia during the defense exhibition 'Indo Defense' held in Jakarta, Indonesia, on the 11th and 12th (local time).
In January 2016, Indonesia agreed to bear about 1.7 trillion won (later reduced to about 1.6 trillion won), which is 20% of the KF-21 development cost, until June 2026 in exchange for the transfer of technology. However, in May last year, Indonesia proposed reducing the contribution to 600 billion won, a third of the original amount, in exchange for receiving less technology transfer. Earlier, at the end of 2023, it requested an extension of the payment deadline for the contribution until 2034.
The South Korean government decided in August last year at the Defense Business Promotion Committee to lower Indonesia's contribution to 600 billion won, accepting Indonesia's request for a reduction. However, Indonesian technical personnel dispatched to Korea Aerospace Industries (KAI), which produces the KF-21, were caught attempting to leak technology, escalating into a conflict that delayed the agreement on the contribution.
The final agreement made this time pertains to the contribution. The payment deadline and scope of technology transfer need to be further discussed with Indonesia. According to DAPA, Indonesia's Ministry of National Defense has begun administrative procedures for the payment of the remaining contribution for the joint development of the KF-21 in accordance with this agreement.
DAPA stated that during its attendance at the local defense exhibition, it met with Minister Prabowo Subianto and Vice Minister Doni Monardo of the Ministry of National Defense to reorganize cooperation on the KF-21 joint development project and expedite its progress. They also agreed to expand collaboration to areas beyond fighter jets, including land and naval systems.
DAPA also revealed that it discussed the production of the Indonesian variant of the fighter jet (IF-X) based on the KF-21. As part of this, Korea Aerospace Industries (KAI) and Indonesia's PTDI (a state-owned enterprise participating in the joint development) agreed to concretize cooperation from production to marketing for the practical implementation of the production of the Indonesian fighter jet (IF-X).
DAPA Administrator Suk Jong-gun said, “We will do our best to strengthen defense cooperation with Indonesia in various fields such as submarines, firepower, and air defense systems, and to expand cooperation throughout the Southeast Asian region in the future.”