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Defense officials meet in Jakarta over stalled fighter jet project

Published: 24 Mar. 2025, 13:58

A KF-21 fighter jet prototype flies during the 1,000th test flight for the model on Nov. 29. [DAPA]

Korea’s KF-21 joint fighter jet development project with Indonesia remains stalled due to differences over funding and technology-sharing agreements.

On March 24, the Defense Acquisition Program Administration (DAPA) announced that its head Seok Jong-gun met with Indonesian Vice Defense Minister Donny Ermawan Taufanto in Jakarta last week to discuss ways to strengthen defense cooperation, including the KF-21 initiative.

“While it’s true that we are facing difficulties in some areas due to differing views, I hope we can strengthen communication and overcome the current challenges to solidify our partnership,” Seok said.

Seok’s mention of “current challenges” may be a reference to the stalled progress on the KF-21 program. Indonesia has been uncooperative since a February 2022 incident in which its technical staff attempted to take sensitive data related to the KF-21 project out of Korea via an unauthorized USB device.

Five Indonesian technicians remain barred from leaving Korea as the case is still under investigation. All five were referred to prosecutors in December 2022, nine months after the case was handed over by a joint investigation team comprising DAPA, the Defense Security Command, and the National Intelligence Service. However, prosecutors have ordered additional investigations, delaying formal indictments, which are not expected until May.

Despite these complications, Korea has made concessions to try to keep the deal alive. In August 2022, DAPA reduced Indonesia’s financial contribution to the KF-21 development from 1.6 trillion won ($1.2 billion) to 600 billion won. The adjustment was made at Indonesia’s request, considering financial constraints and the need to maintain cooperation on related projects like the production of Indonesia-specific fighter jets, known as IF-X.

Defense Acquisition Program Administration (DAPA) Minister Seok Jong-gun, right, poses for a photo with Donny Ermawan Taufanto, Indonesia's vice defense minister, during a meeting in Jakarta on March 21. [DAPA]

At the time, DAPA emphasized that the financial adjustment was unrelated to the data breach incident.

Yet, even with the reduced contribution, Indonesia are yet to ratify the new terms of the deal. The agreement to revise Indonesia’s share of the costs requires an amendment to the original contract, but Indonesia has insisted that the legal issues surrounding its technicians must first be resolved before proceeding.

This stance has frustrated officials in Korea.

“Indonesia is acting as if it’s the victim, even though the issue was caused by their actions,” said an official from the defense industry.

DAPA officials have warned that the continued delays could disrupt the KF-21’s timeline. The aircraft is scheduled to complete development in 2026, with deliveries to Korea’s Air Force beginning later that year.

The financial stalemate also affects negotiations over the transfer of a prototype KF-21 to Indonesia and the value of associated technology transfers. Indonesia’s delayed commitments could raise unit costs, especially if it fails to fulfill its plan to procure 48 locally produced jets.

Korea and Indonesia had initially agreed that Korea would acquire 120 KF-21 units, while Indonesia would produce and purchase 48 under the IF-X program.

Indonesia’s strategic importance as a major defense and economic partner, as well as its leadership in the Association of Southeast Asian Nations (ASEAN), complicates the situation.

During Seok's visit to Jakarta, the two sides also discussed extending the operational life of the KT-1 trainer aircraft and moving forward with a second-phase project for the T-50 advanced trainer jet.

“Minister Seok appears to have focused on finding a breakthrough for revising the KF-21 agreement,” a defense industry insider told the JoongAng Ilbo. “However, it remains to be seen whether this will lead to tangible results.”

Translated using generative AI and edited by Korea JoongAng Daily staff.

BY LEE KEUN-PYUNG [[email protected]]