Finalizing the Transfer of a KF-21 Fighter Jet Prototype Between Seoul and Jakarta
JAKARTA — After years of negotiations, Seoul and Jakarta are concluding the transfer of a unique KF-21 fighter jet prototype. This development marks the culmination of a lengthy process involving a deal initially intended to facilitate the manufacturing of South Korean jets in Indonesia, which was originally planned to include multiple units.
Yusuf Jauhan, head of the Defense Logistics Agency, informed reporters in late June that the domestic production of these jets would no longer proceed, confirming rumors that Jakarta had withdrawn from the agreements to manufacture the Korean jets in Indonesia. This decision effectively terminated the 2015 co-production agreement.
The KF-21 Boramae, engineered by Korea Aerospace Industries, is a dual-engine fighter jet designed to replace South Korea’s older F-4 and F-5 fleets. Indonesia had planned to use these modern jets to upgrade its aging aircraft fleet.
Initially, Indonesia committed to financing 20% of the development costs, which amounted to 1.6 trillion won ($1.3 billion), with payments scheduled through 2026. This agreement included the transfer of one prototype and the technological capability for state-owned PT Dirgantara Indonesia (PTDI) to produce 48 units of the KF-21 Block-I fighter jets in Bandung.
However, the deal encountered numerous hurdles, including delayed payments and accusations of sensitive data theft, leading to multiple renegotiations over the cost-sharing arrangements.
In 2024, Jakarta sought to extend its payment schedule to 2034, a proposal that Seoul rejected as it would interfere with their deployment schedules. The negotiations ultimately resulted in a reduction of Indonesia’s financial contribution to 600 million won, although this reduction came with a significant decrease in the technology transfer stipulations.
The specifics of the KF-21 co-production deal were largely kept confidential, adding to the confusion about its status.
By April, Indonesian authorities announced that the domestic production of the KF-21 would not proceed, and by June, they confirmed that the government had abandoned the program entirely.
This decision followed Jakarta’s completion of its revised financial commitment of 600 million won, in exchange for a single-seat prototype of the KF-21. Officials also expressed a preference for purchasing fully assembled jets instead.
According to Ju Hyung Kim, president of the Security Management Institute think tank, Jakarta’s decision was primarily motivated by practical and financial considerations. “Indonesia may still be interested in the aircraft, but the complexities of local co-production were likely deemed too burdensome. For Seoul, managing this simplified arrangement could be more straightforward and potentially more beneficial for the KF-21’s global marketing efforts,” Kim explained.
If Jakarta proceeds with this plan, Indonesia would serve as an important initial reference case for the KF-21 jets, potentially enhancing its market appeal, added Kim.
Local officials mentioned that procurement strategies are still under consideration, and PTDI has indicated that internal deliberations are ongoing with no firm plans yet established.
While the acquisition of the KF-21 is still a possibility for Jakarta, sources suggest that the government is leaning towards contractors who offer more favorable technology transfer terms.
Officials are also considering the purchase of an additional 24 French Dassault Rafale jets to complement the 42 jets previously ordered under a 2022 agreement.
In April, Jakarta also agreed to a financial arrangement to acquire 48 KAAN stealth jets from Turkish Aerospace Industries in a deal valued at $10 billion, with deliveries starting in 2032.
Editor’s note: This article has been updated to correct the name of the president of the Security Management Institute think tank.
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Jamal Peterson reports on defense, aerospace, and tech policy. With a military background and a strategic mind, he dissects complex subjects with clarity, offering readers sharp, reliable insights.
