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Indonesia agrees to pump $439 million into Korean fighter jet project

Published: 13 Jun. 2025, 19:41

The the KF-21 Boramae fighter jet conducts a test flight on Nov. 29, 2024. [NEWS1]

Korea and Indonesia finalized a revised cost-sharing agreement for the joint development of the KF-21 Boramae fighter jet, setting Indonesia’s contribution at 600 billion won ($439 million), Seoul’s Defense Acquisition Program Administration (DAPA) announced Friday.

The two governments signed an updated memorandum of understanding during the Indo Defense 2025 Expo & Forum in Jakarta, Indonesia, which took place from Wednesday to Thursday, according to DAPA.

Indonesia initially agreed to finance 20 percent of the project — about 1.7 trillion won — when it joined in January 2016, in exchange for access to defense technology. That figure was later adjusted to approximately 1.6 trillion won.

In May of last year, however, Indonesia asked to reduce its share to 600 billion won and delay its payment deadline to 2034 in return for a proportional reduction in the scope of technology transfer.

In response, the Korean government held a meeting of the agency’s defense acquisition program promotion committee in August of last year and decided to accept Indonesia’s new proposal. However, the final agreement was delayed following an incident in which Indonesian engineers dispatched to Korea Aerospace Industries (KAI) were caught attempting to leak sensitive technology.

Under the latest agreement, the total Indonesian contribution has been set at 600 billion won, but the payment schedule and details of the revised agreement will be determined in further discussions.

Visitors stand near miniatures of Turkish combat helicopter Kara Kutvvetleri during the Indo Defense 2025 Expo & Forum in Jakarta, Indonesia on June 12. [EPA/YONHAP]

DAPA stated that Indonesia’s Ministry of Defense has begun administrative procedures to pay the remaining amount and expressed optimism that timely payments would revitalize bilateral defense cooperation.

Indonesia has so far paid around 400 billion won. The remaining 200 billion won will be scheduled through consultations between KAI and Indonesia.

“The scope of the technology transfer will be discussed after the development of the KF-21 system is complete,” a DAPA spokesperson said. “If Indonesia wants a prototype aircraft, the scope of the technology transfer may be adjusted to reflect the value of the aircraft.”

Visitors walks past armoured vehicles displayed at the Indo Defense 2025 Expo & Forum, a biannual arms and defense technology exhibition, in Jakarta, Indonesia, on June 11. [AP/YONHAP]

During the exhibition, DAPA also met with Indonesian Minister of Defense Sjafrie Sjamsoeddin and Deputy Minister of Defense Donny Ermawan Taufanto to reaffirm and accelerate cooperation on the joint development project.

Both sides agreed to expand collaboration beyond the KF-21 to include ground and naval weapon systems and discussed cooperation on Indonesia’s own fighter jet program, the IF-X.

KAI and Indonesia’s state-run aerospace company, PT Dirgantara Indonesia, agreed to strengthen practical cooperation in areas including production and marketing for the IF-X project.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]