A KF-21 fighter jet prototype (front) flies alongside an F-4E jet in this file photo provided by the Air Force on May 12, 2024. (Image courtesy of Yonhap)
SEOUL, Aug. 16 (Korea Bizwire) — South Korea’s defense authorities on Friday approved a plan to reduce Indonesia’s contribution for a joint fighter jet development project to 600 billion won (US$440 million), about one-third of the original amount, the state arms procurement agency said.
The Defense Project Promotion Committee endorsed the plan amid concerns over Jakarta’s commitment to the KF-21 project due to its repeated payment delays.
Indonesia initially agreed to pay 1.6 trillion won, representing 20 percent of the 8.1 trillion-won program launched in 2015 to develop an advanced supersonic fighter. However, Indonesia has so far contributed only around 380 billion won and has recently requested to reduce its total financial contribution to 600 billion won.
The Defense Acquisition Program Administration (DAPA) said the plan covers ways to secure insufficient funds, but did not offer details.
It said the approval considered various factors, including bilateral relations and the possibility of securing the funds, adding that it would properly wrap up cost-sharing talks with Indonesia.
Despite the payment delays, the project is on track to start delivering the advanced fighters, designed to replace South Korea’s F-4 and F-5 Cold War-era jets, to the Air Force in 2026.
In June, Korea Aerospace Industries Ltd., the country’s sole fighter jet builder, signed a 1.96 trillion-won deal with DAPA to start production of 20 KF-21s.
(Yonhap)
