[Yang Nak-gyu's Defence Club] Wavering Indonesia, Does It Have the Will for KF-21?
This Time, Qatar Delays Purchase of Used Mirage Fighter Jets
Indonesia has postponed the purchase of used Mirage 2000-5 fighter jets previously operated by Qatar. Indonesia, which had agreed to share the development costs of the Korean fighter KF-21, is wavering in its air force fighter procurement project, raising concerns that it might abandon the joint project with South Korea.
On the 17th, the domestically produced supersonic fighter jet KF-21 was unveiled at the 'Seoul International Aerospace and Defense Exhibition (ADEX) 2023' held at Seoul Airport in Seongnam, Gyeonggi Province. Photo by Jinhyung Kang aymsdream@
View original imageDanil Anzar Simanjuntak, spokesperson for the Ministry of Defense, said in an interview with CNN Indonesia on the 4th (local time), "Due to financial constraints, the Ministry of Finance and the Ministry of Defense have decided to postpone the purchase of Mirage fighter jets." He explained that until the Rafale fighters ordered from France are introduced, Indonesia will modify its currently owned Sukhoi and F-16 fighters to fill the gap.
In June last year, the Indonesian Ministry of Defense signed a contract to purchase 12 used Mirage 2000-5 fighter jets from Qatar for a total of $792 million (approximately 1.0385 trillion KRW). This contract was spearheaded by Prabowo Subianto, the current Minister of Defense and the leading presidential candidate in the polls. In August, Indonesia signed a memorandum of understanding (MOU) with Boeing for the purchase of 24 F-15EX 4.5-generation fighters. In February 2021, Indonesia contracted to buy 42 Rafale fighters from France worth $8.1 billion (approximately 10.8 trillion KRW).
Contracts for F-15EX and Rafale Fighters in Addition to Mirage Fighters
However, there was criticism within Indonesia questioning the need to spend a large amount of money on old used fighters. Some argued that despite the president’s directive not to import used weapon systems, Minister Prabowo ignored this and should be held accountable by the president.
In 2014, the South Korean government and Korea Aerospace Industries (KAI) agreed to cover 60% and 20% of the development costs respectively, with Indonesia bearing the remaining 20%, and signed a basic agreement in 2016. The condition was that Indonesia would produce 48 fighters domestically after receiving one prototype and various technology transfers. However, Indonesia has only paid 278.3 billion KRW out of the 1.2694 trillion KRW project contribution and has defaulted on about 991.1 billion KRW.
Meanwhile, some argue that it is hard to accept financial shortage as the sole reason since Indonesia significantly increased its defense budget this year. Indonesia raised its defense budget by more than 20% to $25 billion (approximately 32.8 trillion KRW) for weapons modernization. The Indonesian government has not notified any payment plan for the KF-21 ‘Boramae’ contribution.
Criticism of Minister Prabowo’s Attempt to Build Achievements Ahead of the Presidential Election
Although the Indonesian government officially shows willingness to continue the project, there are claims that Indonesia’s complex political landscape ahead of the presidential election is affecting the fighter jet purchase. Local media reported that this issue is expected to be a major topic in the third presidential candidate debate scheduled for the 7th, ahead of next month’s election. Prabowo, the son-in-law of former Indonesian dictator Suharto and current Minister of Defense, is expected to run in next year’s presidential election. There is speculation that Minister Prabowo is pressuring South Korea and KAI, who need defense export achievements, to change contract terms in favor of Indonesia to build his own achievements.
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If Indonesia continues to delay payment of its contribution, it is cautiously predicted that the Defense Acquisition Program Administration (DAPA) and KAI may partner with other countries or pursue a ‘Plan B’ such as independent development. It is also reported that several countries, including Poland and the United Arab Emirates (UAE), have shown interest in the KF-21 development.
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