IFX Indonesian Fighter Experiment (KF21/IFX program)

Korean Aerospace CEO latest Interview
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Before the start of mass production of the KF-21, KAI was plagued by allegations of leaking secrets from researchers in Indonesia, the country that co-developed the KF-21.


"I should have managed those researchers better, but I apologize to the government and the people for the gaps. First of all, we checked at our level and there were no major problems. It was a collection of information that we provided at meetings and other meetings. The investigation is ongoing, so it is impossible to say what the outcome will be. However, as Indonesia is an important strategic partner for us, it is a burden for it to turn into a diplomatic issue. Indonesia purchased the KT-1 in 2001 and was the first exporter of the Korean aircraft. Later, the T-50 was also purchased. The development of the KF-21 could have been stalled if Indonesia had not participated. Indonesia has made a significant contribution to the development of Korea's aerospace industry. If Indonesia buys South Korean weapons, the impact will affect the entire Southeast Asian country. I hope that we can take these things into consideration and come to a victorious conclusion."

― Indonesia said it would not pay 1 trillion won out of the 1.6 trillion won allocated for the development of the KF-21, leaving the government and KAI to bear the shortfall of 1 trillion won.

"In the process of developing the KF-21, efforts were made to reduce costs. If R&D proceeds smoothly as it is now, it is expected that the cost will be reduced by 500 billion ~ 600 billion won. Still, it's a very heavy amount, but we have no choice but to go in the direction of sharing it between the government and KAI."

― Many point out that instead of Indonesia, which has repeatedly caused the problem of non-payment of development costs, joint development should be carried out with countries with strong financial capabilities, such as the Middle East.

"The development of the first phase (of air-to-air armament) is almost complete. The second stage is to add armaments such as air-to-ground, so development is relatively simple and development costs are not high. Involving other countries in the development of the second phase raises very complex issues, such as the exposure of the technology in the first phase. From the third stage of development, it is planned to go to a manned and unmanned complex system, which will cost a lot of money. From the third stage, I think it would be good to develop it with countries that are rich in both money and technology."

 
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S. Korea approves cutting Indonesia's contribution for joint KF-21 fighter project to 600 bln won​


SEOUL, Aug. 16 (Yonhap) -- 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.

 
2025 defense budget is 165 trillion Rupiah, an increase from 135 trillion Rupiah in 2024. With 135 trillion Rupiah budget, defense ministry is still able to set aside budget for KF21/ IFX program at 80 million USD this year.

Previously Defense Ministry propose 155 trillion Rupiah budget for 2025 but later in 16 August where the final budget revealed then it is some how increased from the proposed figure around 10 trillion Rupiah.

KF21/ IFX program is Defense Ministry program and with the increase I am pretty optimistic about Indonesia continued participation in the program.

Total state budget in 2025 is 230 billion USD (approved by parliament in 16 August 2024).

State budget deficit is 2.8 % of GDP and Rupiah value assumption is set at 16.000 Rupiah per USD in 2025 state budget. Last week though Rupiah started to gain momentum and reach 15.750 per USD already. I expect in 2025, Rupiah will likely be in 14.750 - 15.500 range next year.

In conclution, I am pretty optimistic about Indonesian gov ability in funding KF21/ IFX program. More over with SK accepting Indonesia proposal to reduce Indonesia cost share at 1/3 from initial cost share so my optimism increase alot.
 
Political Aspect

KF21 program is started from 2009 and Indonesian President was SBY during that time. 2011 is the start of TD (Technology Development) phase . 2013 - 2018 there was internal research in Indonesia. Internal research conducted in Indonesia was stop by Jokowi administration in 2018.

SBY party was Jokowi strong opponent and had become opposition party from 2014 - 2023

SBY party support Prabowo in 2024 election and SBY son as the party leader has entered Jokowi administration as minister

The party that initiated KFX program is now part of the ruling party

More over R80 program is also having a big boost as Ilham Habibie become Nasdem politician and entered West Java Governor election ( Indonesian Aerospace located in West Java )

Another reason of my optimism beside stock market since last week become bullist and seem confidence with next administration after 2025 state budget is released and Prabowo administration is poised to be very strong with 80 % backing in parliement under KIM coalition
 
Prabowo is expected to visit South Korea this year ( he has visited China and Japan after winning the election and meet with those countries leaders).

KF21/ IFX program is expected become one of the main topics during his visit to South Korea this year.

Strenghtening relation with SK which is a strategic partner of Indonesia in my opinion is likely much easier during Prabowo administration as the differences on KF21/ IFX program have already been pretty much solved after Korea agreed on Indonesia demand to cut its cost share into 1/3 of initial cost
 
Political Aspect

KF21 program is started from 2009 and Indonesian President was SBY during that time. 2011 is the start of TD (Technology Development) phase . 2013 - 2018 there was internal research in Indonesia. Internal research conducted in Indonesia was stop by Jokowi administration in 2018.

SBY party was Jokowi strong opponent and had become opposition party from 2014 - 2023

SBY party support Prabowo in 2024 election and SBY son as the party leader has entered Jokowi administration as minister

The party that initiated KFX program is now part of the ruling party

More over R80 program is also having a big boost as Ilham Habibie become Nasdem politician and entered West Java Governor election ( Indonesian Aerospace located in West Java )

Another reason of my optimism beside stock market since last week become bullist and seem confidence with next administration after 2025 state budget is released and Prabowo administration is poised to be very strong with 80 % backing in parliement under KIM coalition

Here is Democrat Party leader, AHY. He is former Army officer. His father, SBY, is KFX/IFX program initiator with Korean PM. He is now inside government since late 2023

When he joined the gov late last year he has said that long term program should be continued regardless who will be the next leader of Indonesia

Prabowo promise very important position for AHY in his Cabinet (Administration)

 

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