Indonesia has proposed to reduce its share of payments for a joint fighter jet development project with South Korea, cutting it to about one-third of the originally agreed amount. The country suggested paying about 600 billion won for the KF-21 joint fighter jet project, significantly less than the 1.6 trillion won that was initially agreed upon by June 2026. Both governments are currently in negotiations to resolve the cost-sharing issues in order to successfully complete the development of the KF-21 system.
The KF-21 fighter jet, developed by Korea Aerospace Industries (KAI) with partial backing from Indonesia, is meant to be a more affordable and less stealthy alternative to the U.S.-built F-35 that South Korea currently relies on. Indonesia’s decision to cut its financial contribution to the project means that it will receive fewer technology transfers from South Korea. This move comes after Indonesia had halted payment of its 20% share of the development costs, and a previous dispute over funding for the joint fighter jet project worth over 8 trillion won was resolved in 2022.
The South Korean Defense Acquisition Program Administration stated that both countries are working to resolve the cost-sharing issues for the KF-21 project. The Indonesian Ministry of Defense has not responded to requests for comment regarding the recent proposal to reduce their financial contribution. The joint development project is crucial for both countries, as it aims to provide them with a domestic fighter jet capability and reduce reliance on foreign suppliers.
South Korea recently faced a setback when police raided KAI’s head office in March in connection with two Indonesian nationals accused of leaking technology related to the KF-21 fighter jet project. This incident may have further strained relations between the two countries and could have influenced Indonesia’s decision to reduce its financial contribution to the project. Both South Korea and Indonesia are now working to address these challenges and ensure the successful completion of the KF-21 fighter jet development.
The KF-21 project highlights the collaboration between South Korea and Indonesia in the defense industry and showcases their efforts to enhance their military capabilities. By jointly developing the fighter jet, both countries seek to strengthen their defense capabilities and reduce their dependence on foreign suppliers. The ongoing negotiations to resolve the cost-sharing issues demonstrate the commitment of both governments to ensure the successful completion of the project despite the challenges they have faced.
Overall, the proposed reduction in Indonesia’s share of payments for the joint fighter jet project with South Korea reflects the complexities and challenges involved in international defense collaborations. Both countries are working to overcome these obstacles and move forward with the development of the KF-21 fighter jet, which is crucial for enhancing their defense capabilities and reducing their reliance on foreign technology. Despite the setbacks and disputes that have arisen during the project, both South Korea and Indonesia remain committed to its successful completion.
