Kang Gu-young, KAI President: "Indonesia Paid 9.4 Billion KRW for KF-21 Share... Reflected in Next Year's Budget"

Interview with Media at Indonesian Defense Exhibition
"Showed Willingness to Continue Participation in the Project"

Kang Gu-young, President of Korea Aerospace Industries (KAI), met with the Korean press corps at the '9th Indo Defence 2022' defense industry exhibition, which opened on the 2nd (local time) at the JI Expo exhibition hall in Jakarta, Indonesia, and introduced the progress of the KF-21 project.
[Photo by Ministry of National Defense Joint Press Corps]

[Jakarta (Indonesia) = Ministry of National Defense Joint Press Corps & Asia Economy Reporter Jang Hee-jun] Kang Gu-young, President of Korea Aerospace Industries (KAI), announced on the 2nd (local time) that Indonesia, a participating country in the development project of the domestically produced fighter jet 'KF-21 Boramae,' has resumed payment of its contribution. With the resolution of Indonesia's approximately 46-month delay in payment, concerns over disruptions to the KF-21 project have significantly eased.

During the '9th Indo Defence 2022' defense industry exhibition held at the JIExpo exhibition center in Jakarta, Indonesia, Kang held an interview with the Korean press corps and explained the current status of the KF-21 project along these lines.

Kang said, "At the first flight event of the KF-21 on September 28, the Indonesian government announced its policy to continue the project," adding, "The Indonesian government transferred the 'Commitment Payment,' which was deposited on the 1st of this month." He continued, "The deposited amount is about 9.4 billion KRW," and explained, "It is said that 33 million USD (about 46.8 billion KRW), part of Indonesia's contribution to the KF-21 project, has been reflected in next year's defense budget."

KAI signed a contract with the Indonesian government in January 2016 for the joint development of the KF-21 (called 'IF-X' by the Indonesian side). The system development cost for 'Block 1' of the KF-21 is approximately 8.1 trillion KRW (reflecting exemption from defense material VAT). Of this, Indonesia's contribution is 1.6 trillion KRW.

Domestic Supersonic Fighter Jet Boramae KF-21 Photo by Yonhap News

Indonesia agreed to receive one domestically produced KF-21 prototype in lieu of paying the contribution and to locally produce 48 IF-X aircraft within its country. Additionally, Indonesia will dispatch personnel to Korea to receive technical data.

However, by January 2019, Indonesia had paid only about 200 billion KRW in contributions. After continuous delays, partial payment resumption has now been made. Although only part of the estimated 900 billion KRW overdue amount was sent, Kang evaluated this as a sign of Indonesia's intention to continue participating in the project.

Kang stated, "Currently, there are a total of 39 Indonesian personnel stationed at KAI," and explained, "PTDI (Indonesia's project partner company) aims to increase this number to around 100 by the end of the year." He also announced, "If Indonesia pays the contribution normally, one prototype and development data will be transferred."

Previously, the Defense Acquisition Program Administration stated that if Indonesia's contribution arrears continued until the end of KF-21 development, there would be no prototype or technology transfer.

Meanwhile, KAI set up a solo exhibition booth at this exhibition, displaying the KF-21, light attack aircraft FA-50, domestically produced helicopter Surion, and light armed helicopter (LAH). The exhibition will be held for four days until the 5th.

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