Indonesia Agrees to Keep Commitment to Fighter Program with S. Korea: DAPA

12 November 2021

A photo after signing an agreement regarding cost sharing for a joint fighter development project in Jakarta on Nov. 11, 2021 (photo : DAPA)

SEOUL (Yonhap) -- Indonesia agreed Thursday to retain its financial commitment to a joint fighter development project with South Korea, Seoul's state arms procurement agency said, ending years of speculation it could pull out of the costly undertaking.

The Defense Acquisition Program Administration (DAPA) said Indonesia reaffirmed its earlier pledge to shoulder 20 percent of the cost for the 8.8 trillion-won (US$7.4 billion) project, called KF-X, and agreed to make 30 percent of its total payments in kind.

Indonesia made the pledge during this week's negotiations in Jakarta with Seoul officials, as the country's overdue payments for the project, which stand at 800 billion won, had reinforced a sense that the Southeast Asian country might no longer be interested in the development efforts.

DAPA officials did not specify when and how Indonesia would address the overdue payments, but stressed its reiteration of a will to stay in the project was a "major" outcome of the latest negotiations.

Indonesia first agreed to pay 20 percent of the development cost in 2010. But it stopped making payments in 2017, casting doubts over whether it would continue to stay onboard.

DAPA chief Kang Eun-ho was part of the Korean negotiation team that arrived in the Indonesia capital Tuesday.

"The agreement this time bears great meaning given that the two countries have concluded their negotiations in a mutually beneficial direction through sufficient consultations between them," Kang was quoted by his office as saying.

By the end of this year, the number of Indonesian technicians assigned to the KF-X project in Korea will jump to 100 from the current 32, the DAPA said, in yet another sign of the country's commitment to the project.

South Korea has been working on the KF-X project since 2015 to develop an advanced homegrown fighter jet to replace the Air Force's aging fleet of F-4 and F-5 jets. (Yonhap)

Indonesia reaffirms commitment to pay 20% of the KF-21 fighter's development costs

The Indonesian Ministry of Defence has reaffirmed its commitment to funding 20% of development costs for the KF-21/IF-X multirole fighter aircraft, with about 30% of its contribution set to be paid in kind, South Korea's Defense Acquisition Program Administration (DAPA) announced on 11 November.

The announcement is part of an agreement that was reached between South Korean and Indonesian representatives during the sixth bilateral working-level meeting held in Jakarta.

“Negotiations were completed in a way that is mutually beneficial to both countries through sufficient bilateral consultations” and the agreement “is expected to contribute to the quick stabilisation of the joint development programme as well as to resolving unpaid contributions by Indonesia”, Director of DAPA Kang Eun-ho was quoted as saying.

DAPA did not provide information on how or when the overdue payments will be addressed, noting only that details on the 30% contribution have yet to be defined

Under the original agreement – signed in 2016 – Indonesia committed to pay for 20% of the total development costs of the KF-21/IF-X project – valued at KRW 8.8 trillion (USD7.5 billion) – through to 2028, with South Korea and Korea Aerospace Industries (KAI) covering 60% and 20% respectively.

Specifically, it was agreed that KRW8.12 billion would be invested in system development between 2015 and 2026, while KRW680 billion would be added between 2026 and 2028 for additional weapon testing. (Jane's)