Indonesia to provide Korea with new payment schedule for KF-21 in June: DAPA chief

Defense

Published: 11 May. 2023, 09:47 Updated: 11 May. 2023, 10:32

Indonesia to provide Korea with new payment schedule for KF-21 in June: DAPA chief

A prototype of the KF-21 fighter jet under development bearing the flags of Korea and Indonesia moves out of a hangar at the headquarters of Korea Aerospace Industries in Sacheon, South Gyeongsang, on Tuesday. [YONHAP]

Indonesia will provide Korea with a new timetable for its payments for the joint KF-21 fighter project by late next month, the head of Seoul's state arms procurement agency has said, in a development expected to ease concerns over its unpaid share of the program's costs.

Eom Dong-hwan, minister of the Defense Acquisition Program Administration (DAPA), told reporters of the plan Tuesday, as Indonesia resumed payments for the project last November for the first time in nearly four years.

As a partner country, Indonesia has agreed to shoulder about 20 percent of the project's total cost of 8.8 trillion won ($6.5 billion). But it had halted payments from January 2019 until its resumption last November, raising questions over its commitment to the advanced warplane development project launched in 2015.

The country is estimated to have over 800 billion won in unpaid amount for the project scheduled for initial completion by 2026.

"[Indonesia] has promised to notify Korea of its payment plan for the remaining amount by late June," Eom said during a media event at the headquarters of Korea Aerospace Industries (KAI), the country's sole aircraft maker, in Sacheon, South Gyeongsang.

"In order to ensure the payment plan proceeds normally next month, our project chief is scheduled to visit Indonesia soon for talks with high-level defense officials on its details," he added.

Eom acknowledged the financial burden Indonesia is likely to face considering the project's deadline, but noted that the country made a payment of around 40 billion won in late February.

"We plan to manage such issues so that it does not disrupt the KF-21's development," he said.

Meanwhile, KAI CEO Kang Goo-young said the company is on track to deliver the first batch of FA-50 light attack aircraft to Poland, with a roll-out ceremony for the first model to be held on June 7.

KAI signed a deal last year to supply 48 FA-50s to the country amid Warsaw's efforts to replace its aging warplanes in the wake of Russia's invasion of Ukraine.

"The first and second FA-50s will be sent in late July so that they can be assembled in Poland in early August and be able to conduct flights from mid-August," he said.

Under the deal, KAI will deliver 12 FA-50 "gap filler" models to the country by the end of this year and 36 FA-50 PL models, equipped with the advanced active electronically scanned array radar and other upgrades, from 2025 to 2028.

The fifth KF-21 prototype will make its first flight next week and the sixth one by the end of next month, according to KAI officials.

DAPA plans to stage some 2,000 test flights in total with the six prototypes by 2026.

On the back of the steady progress, DAPA seeks to sign a mass production contract for the aircraft next year, with Eom vowing to swiftly complete a "provisional" combat suitability test for the aircraft as part of efforts to finalize the mass production plan.

Yonhap