“The cooperation has started and the MoU on was signed [Thursday] by secretaries-general of Indonesian and South Korean defense ministries,” Indonesian Defense Ministry spokesman I Wayan Midhio told The Jakarta Post on the weekend.

“We will cover 20 percent of the total cost,” he said, adding that the total cost of the project had not been estimated.

South Korea’s offer to develop jet fighters had come as the Indonesian government was revitalizing the Indonesian Military (TNI), Wayan said.

South Korean President Lee Myung-bak signed a letter of intent for the joint development project while visiting Indonesia in March last year, laying the foundations for the agreement, Malaysian news agency Bernama reported.

The project aims to secure multi-purpose fighter jets, on par with F-16 jet fighters, to replace the ageing F-4 and F-5 fighters currently used by the South Korean Air Force, it said.

“They said they wanted to develop this aircraft, which is higher in class than F-16 but lower than F-35. It will be the first [class of plane ever built],” Wayan said.

“The Air Force was finally interested after learning it.”

He said after signing the MoU the next step would be to develop a prototype aircraft.

But the there would be no significant development on the joint project any time this year, he said.

“The prototype is expected to fly by 2020,” Wayan said.

“After that there will be agreements to be arranged on terms and conditions of marketing and joint production.”

He also said Indonesia planned to purchase 50 FSX planes once mass production began.

Those FSX planes would be alternatives to the US jet fighters Indonesia had planned to purchase, to complete its squadrons, he said.

Wayan also said the Indonesian government expected Indonesia to be the production hub, involving Bandung-based aircraft manufacturer PT Dirgantara Indonesia, although this issue had not been discussed as yet.

“In principle, [I believe] they wouldn’t mind [making Indonesia the production base] because they already produce many [jet fighters],” Wayan said.

“It would also be cheaper here because our labor is cheaper.”

He also said having production here would help create jobs and could lead to technology transfer.

The joint project is expected to create approximately 70,000 jobs, improve the local economy and enhance the brand value of South Korea’s aviation industry, South Korea’s Defense Acquisition Program Administration said as quoted by Bernama.

Despite its vast territory, Indonesian defense forces have few jet fighters.

While Indonesia has already developed a jet carrier, it does not have the technology to build jet fighters yet.

Indonesia had proposed a plan to purchase US-made F-16 jet fighters, after the US lifted its embargo.

Indonesian Defense Minister Purnomo Yusgiantoro expressed Indonesia’s intent to buy the aircraft at a recent meeting with US Secretary of Defense Robert Gates, in Singapore.

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