S.Korean KF-21 Jet Project Cost Reduced, Indonesia Will Get to Pay Lower Contribution

A reduction in the cost of the South Korean KF-21 fighter jet from 8.1 trillion won ($5.94 billion) to some 7.6 trillion won will enable Seoul to accommodate Indonesia’s request for a lower contribution.

The Defense Acquisition Program Administration (DAPA) which appraised select South Korean media about the revised project cost on May 8 said that it is considering accepting Indonesia’s proposal to slash its  share in the KF-21 fighter development costs by a third.

“We are open to accommodating Indonesia’s suggestion and adjusting its share to an amount it is able to pay,” the DAPA official said.

The project was originally calculated to cost 8.1 trillion won ($5.94 billion) but now the final cost would save some 500 billion won.

According to the DAPA, Indonesia has asked to slash its agreed share of the KF-21 development costs to 600 billion won, which is only about a third of the 1.6 trillion won that it was supposed to contribute, by the end of the project in 2026.

Under the original commitment, Indonesia was to pay for 20 percent of the joint project in exchange for technology transfers from South Korea.

South Korea’s technology transfers could be “adjusted in a way” that can correspond with the reduced input from Indonesia. “The transfer of meaningful transfers takes place after 2026,” the official said.

South Korea is due to make its final decision on the Indonesian proposal later this month.

KF-21 project making rapid progress

 After having completed aerial refueling tests in March, the KF-21 prototypes have conducted high speed tests achieving Mach 1.8 and also weapons firing tests in the last few weeks.

The program is on schedule to enter limited series production by 2026-27.