Jakarta - Indonesia has proposed reducing its financial contribution to a joint fighter jet development project with South Korea to approximately one-third of its initially agreed amount.
According to Yonhap News Agency, amidst ongoing concerns about delayed payments, Indonesia suggested a new total payment of 600 billion won (US$442.3 million) for the KF-21 jet project. This adjustment significantly lowers its commitment from the original 20 percent of the 8.1 trillion-won program initiated in 2015, which aims to produce an advanced supersonic fighter by 2026.
Initially, Jakarta agreed to finance the project in exchange for receiving one prototype model, technology transfers, and the production of 48 units within Indonesia. However, the recent proposal indicates a desire to reduce the payment in exchange for fewer technology transfers. To date, Indonesia has paid approximately 300 billion won, but has struggled to meet further payment deadlines, raising doubts about its commitment to the program.
The proposed reduction in funding follows a request from Indonesia to South Korea late last year, asking to defer payments until 2034, a request that Seoul has declined, maintaining that payments should be completed by the 2026 deadline. A government official noted that consultations are ongoing, and no decision has yet been made regarding the acceptance of Indonesia’s revised payment proposal.
This financial negotiation occurs amid a security breach investigation involving an Indonesian engineer accused of attempting to steal technology related to the KF-21 jet. The engineer, dispatched to Korea Aerospace Industries—the manufacturer of the KF-21—was apprehended in January while trying to exit a facility with a USB storage device containing sensitive data about the fighter jet.