Amid indications of progress over the issue of pending payments covering Indonesia’s share of the KF-21 project, South Korean minister for Defense Acquisition Program Administration (DAPA), Eom Dong-hwan held talks with Indonesian defence minister Prabowo Subianto in Jakarta on Friday.
Accompanying the Indonesian Defense Minister were high-ranking officials, including the Secretary General of the Ministry of Defense, the Director General of the Ministry of Defense, the Head of Research and Development of the Ministry of Defense, and the Managing Director of PT Dirgantara Indonesia.
This meeting aimed to address the lingering issue of Indonesia's payment delays in its share of the KF-21 fighter jet development project. Indonesia had previously agreed to cover approximately 20% of the project's 8.1 trillion won ($5.99 billion) cost by 2026.
However, payment delays had cast doubts on Jakarta's commitment to the project. To date, Indonesia has paid 278.3 billion won, leaving a significant gap in its payments.
Last month, South Korean President Yoon Suk Yeol and Indonesian President Joko Widodo reaffirmed their determination to successfully complete the KF-21 project during a meeting in Jakarta.
The KF-21 program, also known as KF-X, is a massive defense project undertaken by the South Korean government, with a budget of 8.8 trillion won ($7.1 billion). It encompasses the development of the 4.5-generation KF-21 Boramae aircraft, aiming to deliver 120 of these fighter jets to the South Korean Air Force by 2032. The project's timeline spans from 2015 to 2028, with an initial focus on aircraft development and air-to-air combat capabilities.
Minister Eom Dong-hwan's visit to Indonesia holds the promise of resolving the financial issues surrounding Indonesia's participation in the KF-21 project, ensuring the continued progress of this significant defense initiative between the two nations.