Indonesia completes payment for KF-21 joint development
Updated : June 30, 2026 - 17:23:51
June 30, 2026 - 11:19:10
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Indonesia has paid its share of costs for the joint development of South Korea’s KF-21 fighter jet, Seoul officials said Tuesday.
According to South Korea’s Defense Acquisition Program Administration, Indonesia completed payment of its 600 billion won ($387 million) contribution to the KF-21 project on June 25.
The payment came after Jakarta pledged earlier this year to settle the remaining 64 billion won by the end of June. Indonesia had paid about 536 billion won as of April.
The 600 billion won covers the transfer of a prototype of the 4.5-generation fighter jet, personnel costs for Indonesian researchers and technology-transfer-related expenses, according to officials.
The KF-21 project was launched in 2015 to replace South Korea’s aging fleet of F-4 and F-5 aircraft and develop an indigenous fighter platform.
Indonesia joined the program as a joint development partner in 2016, helping give the project momentum by turning it into an international cost-sharing program at a time when it faced questions over its massive budget and technological challenges.
Initially, Indonesia agreed to shoulder about 20 percent of the KF-21 development costs, amounting to 1.6 trillion won. But after Jakarta fell behind on payments, citing economic difficulties, South Korea agreed to lower Indonesia’s contribution to 600 billion won and reduce the scope of technology transfers and development data to be provided.
The KF-21 development project was completed this month, while the first mass-produced KF-21 was rolled out in March in a ceremony attended by President Lee Jae Myung.
With the payment completed, Seoul is now expected to review the transfer of a KF-21 prototype to Jakarta.
The aircraft South Korea had promised to deliver to Indonesia is the fifth prototype, which made its maiden flight in May 2023 and has since undergone tests involving the active electronically scanned array radar and aerial refueling.
Attention is also on whether a separate export deal for 16 KF-21 jets to Indonesia, reportedly under discussion, will materialize.
“We will ensure that technology transfers of appropriate value corresponding to the adjusted contribution are made, taking into account national interests, technology protection and the bilateral defense cooperation relationship,” a DAPA official said.
The official declined to comment on Indonesia’s KF-21 procurement plan or budget allocation.
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