Republic of Korea and Indonesia are Negotiating Changes to the KFX/IFX Fighter Program

12 Februari 2019

KF-X/IF-X fighter (photo : JakartaGreater)

TSAMTO - A delegation from Korea Aerospace Industries (KAI) visited Jakarta to negotiate a renegotiation of the conditions for Indonesia’s participation in the KFX / IFX Korean Fighter Xperiment / Indonesia Fighter Xperiment joint development and construction program.

According to information and documents obtained by the Jane's Defense Weekly from a source on the Defense, Intelligence and Foreign Affairs Committee of the House of Representatives of the Indonesian Parliament, the negotiations were held for two days (January 24 and 25).

Indonesia was represented at the meeting by the leaders of the state-owned company PT Dirgantara Indonesia (PTDI), the Ministry of Defense of Indonesia, and the Ministry of Political, Legal and Security Coordination (POLHUKAM).

The document that Jane's received indicates that Indonesia intends to propose to roll over its payment obligations under the program until 2031.

It is also expected that to further reduce the burden on the national defense budget, Indonesia will offer to make payments under the program through countertrade transactions instead of cash, by analogy with the strategy it implements when it purchases Su-35 fighters in Russia.

In addition, Jakarta insists on the expansion of intellectual property rights to technologies developed under the program, with a view to their commercialization in the future.

In accordance with the initial agreement signed between the two countries in 2015, Indonesia is obliged to pay 20% of the total development costs, which is estimated to be about $ 8 billion. The South Korean government will pay 60% of the costs, and KAI will cover the remaining 20 %

In exchange for investments, Indonesia will gain access to the technologies and know-how developed under the program, as well as the right to acquire fighters.

KF-X/IF-X fighter (photo : JakartaGreater)

According to current plans, the first prototype of the KFX / IFX is scheduled to roll out by 2021, flight tests begin in 2022, and production - in 2026.

The document states that after the start of serial production, Indonesia intends to acquire an initial batch of 16 aircraft. Jakarta also insists PTDI grants sales of KFX / IFX aircraft to potential buyers outside Indonesia.

KAI announced the launch of the KFX program in 2001, the aircraft was originally conceived as a subtle twin-engined multi-role fighter. In 2011, the Republic of Korea concluded an agreement with Indonesia on cost-sharing for the development of KFX / IFX, and its combat use was supposed to begin in 2023.

However, in 2012, the program faced financial difficulties and then President of the Republic of Korea Pak Geun-hye in early 2013 suspended its implementation. The program resumed in 2014, when the Republic of Korea and Indonesia signed a joint design and development agreement that governs the participation of countries in the program.

In 2018, Indonesian officials confirmed to national media that Jakarta did not fully pay for participation in the KFX / IFX program and the deficit was due to a reduction in the defense budget. In 2018, defense spending in Indonesia decreased by 12% compared with 2017 and amounted to $ 7.2 billion. At the same time, less than $ 1 billion was allocated for purchases, research and development.

In the future, Indonesia intends to replenish the fleet of Russian-made aircraft with the KFX / IFX platform, and Seoul plans to replace the outdated F-4E “Phantom” and F-5E “Tiger-2” aircraft and, eventually, the F-16. As expected, the Air Force of the Republic of Korea will acquire up to 250 aircraft. About 350 KFX / IFX are expected to be exported.

(ArmsTrade)