Indonesia pays full KF-21 development share, paving way for prototype delivery

Indonesia has fulfilled its financial commitment to the joint development of the KF-21 fighter jet by paying its entire share of the program's costs, totaling approximately 600 billion won (around $430 million USD).

The payment, finalized on May 25, covers the agreed-upon amount after earlier delays due to economic reasons. Indonesia had initially committed to 20% of the development costs, which amounted to 1.6 trillion won. However, following negotiations with South Korea, the contribution was reduced to 600 billion won, with a corresponding adjustment in the scope of technology and development data to be shared.

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We will ensure that technology transfer commensurate with the adjusted development costs can be achieved, comprehensively considering national interests, technology protection, and the defense cooperation relationship between the two countries.

This full payment is significant as it is expected to expedite the procedures for transferring the KF-21 prototype aircraft to Indonesia, as agreed upon by both nations. The fifth KF-21 prototype, which successfully completed its first flight in May 2023 and has undergone testing for its Active Electronically Scanned Array (AESA) radar and aerial refueling capabilities, is designated for delivery to Indonesia.

Beyond the joint development, attention is also focused on the potential export of 16 KF-21 units, a separate initiative currently underway. Officials from South Korea's Defense Acquisition Program Administration (DAPA) stated that adjustments to the development costs were made considering national interests, technology protection, and bilateral defense cooperation, ensuring appropriate value in technology transfer. However, DAPA noted that discussions regarding Indonesia's specific procurement plans and budget allocations for the KF-21 are limited.

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It is difficult to comment on Indonesia's plans to purchase the KF-21 and its budget allocation.