Indonesia has proposed reducing its financial contribution to a joint fighter jet development project with South Korea, according to sources familiar with the matter cited by Yonhap. The Southeast Asian nation suggested cutting its payment to approximately one-third of its original commitment amid ongoing concerns regarding delayed payments.
The proposed reduction would see Indonesia’s total contribution to the KF-21 jet project drop to 600 billion won (US$442.3 million), a stark contrast from the nearly 20 percent of the project’s 8.1 trillion-won budget that was initially agreed upon in 2015. The ambitious project aims to develop an advanced supersonic fighter jet by 2026.
Originally, Jakarta committed to the investment in exchange for obtaining one prototype model, technology transfers, and the rights to produce 48 units of the fighter jet in Indonesia. However, recent proposals have indicated a desire to scale back on the payment amount in exchange for fewer technology transfers.
The sixth prototype of the Korean KF-21 Boramae fighter took off for the first time
To date, Indonesia has contributed approximately 300 billion won (around 220 million dollars) to the project but has struggled to meet the scheduled payment deadlines, raising doubts about its commitment to the development timeline. This has resulted in financial strain on the project and prompted discussions about the future of this international collaboration.
Last year, Indonesian officials requested that South Korea allow them to defer payments until 2034. However, Seoul has remained firm, insisting that payments continue according to the original schedule with a final deadline in 2026.
A government official reported that discussions are ongoing with the Indonesian government, and a final decision on accepting this new proposal has not yet been made.
Indonesian engineers investigated for allegedly stealing technology from KF-21 “Boramae”.
The outcome of these negotiations could significantly impact the partnership and the future of the KF-21 jet project, underscoring the challenges in maintaining international defense collaborations amidst financial uncertainties.
