Defense Acquisition Program Administration Chief: "KF-21 Indonesia Contribution Issue to Be Resolved Next Month"

[Image source=Yonhap News]

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] Kang Eun-ho, Administrator of the Defense Acquisition Program Administration (DAPA), stated that the issue of Indonesia's unpaid contributions, a joint development partner of the Korean Fighter Jet (KF-21), will be resolved by next month.

Korea and Indonesia have been jointly bearing a project cost of 8.8 trillion KRW from 2015 to 2028 to develop the 4.5-generation fighter jet under the KF-21 project. Indonesia stopped paying its contributions in 2017 citing economic difficulties, and currently, 704.1 billion KRW remains unpaid.

On the 12th, during the National Assembly Defense Committee’s DAPA audit, when People Power Party lawmaker Kang Dae-sik asked whether the contribution issue could be resolved through working-level consultations with Indonesia, Kang said, "It has been confirmed that Indonesia is also at the final stage regarding the contribution issue," and added, "I am confident that the contribution issue will be resolved within November."

Regarding criticism that Korea has been excessively led by Indonesia in the KF-21 project, he also said, "Indonesia recently signed an additional purchase contract for five more FA-50s," adding, "If they had no intention of technological and industrial cooperation with us, they would not have signed the additional contract."

Indonesia is investing 1.7 trillion KRW, which is 20% of the total project cost, and after receiving one prototype and technical data, plans to locally produce 48 next-generation fighter jets in Indonesia. However, concerns about project delays arose when, in March last year, due to the COVID-19 situation, Indonesian technical personnel in Sacheon, Gyeongnam, were repatriated to their home country.

However, the visit of Prabowo Subianto, Indonesia’s Minister of Defense, to Korea in April for the KF-21 prototype’s first delivery ceremony led to an agreement to resume negotiations on contributions, opening the way for project normalization. Furthermore, about 30 Indonesian technical personnel participating in the project re-entered Korea in August, restarting the joint development project.

This content was produced with the assistance of AI translation services.