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South Korea rolls out first KFX jet prototype. Will Indonesia still reap benefits from it?

Lingering questions remain on the future involvement of Indonesia in the Korea Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX) jet, despite a seemingly successful public rollout of the first prototype.

Tri Indah Oktavianti (The Jakarta Post)
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Jakarta
Fri, April 16, 2021

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South Korea rolls out first KFX jet prototype. Will Indonesia still reap benefits from it? South Korea unveils the first prototype of the KFX fighter jet it is developing with Indonesia in a rollout ceremony in Sacheon, South Korea on April 9, 2021. When deployed by the South Korean military the aircraft will be known as the KF-21 Boramae. (Yonhap/via Reuters)

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ingering questions remain on the future involvement of Indonesia in its joint development project for the Korea Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX) jet, despite a seemingly successful public rollout of the first prototype that drew the attention of leaders from both sides.

South Korean President Moon Jae-in, Defense Minister Suh Wook and Defense Acquisition Program Administration (DAPA) Minister Kang Eun-ho inaugurated the rollout of the first Korean-made prototype last week after a decade in the making. 

The ceremony was attended by Indonesian representatives, most notably Defense Minister Prabowo Subianto, indicating that Indonesia is still fully committed despite uncertainty over the renegotiation process. Joining the ceremony virtually was President Joko “Jokowi” Widodo, who wished its success would further benefit the partnership between the two countries amid the persisting uncertainty.

The joint jet fighter development was initiated in 2010, with the South Korean aircraft manufacturer Korea Aerospace Industries (KAI) having been chosen to helm the project and Indonesia having agreed to contribute 20 percent of the project's total investment fund. Under this agreement, Indonesia is expected to invest US$1.3 billion in exchange for access to its technology that will allow state-owned aircraft maker PT Dirgantara Indonesia to produce one of six total KFX/IFX prototypes. 

But Indonesia has been seeking renegotiations to reduce its share of the development cost to 15 percent since 2018 in order to ease the burden on the state budget. To date, the renegotiation remains unclear.

“We are currently looking for the option that best serves Indonesia’s national interest,” Defense Ministry spokesperson Dahnil Anzar Simanjuntak told The Jakarta Post.

The KFX/IFX 4.5-generation aircraft project is currently the biggest project of the South Korean military with a total development budget of about 8.6 trillion won ($7.6 billion), Korean media outlets report.

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