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Indonesia to cut contribution to South Korea fighter jet project
Although the two countries agreed on the amount, additional discussions are needed on the payment deadline and the specific scope of tech transfer.
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South Korea's first homegrown fighter jet KF-21 is unveiled during its rollout ceremony in Sacheon, South Korea, on April 9, 2021. (Yonhap/via Reuters)
S
outh Korea and Indonesia signed an agreement cutting down the latter's contribution in a South Korea-developed fighter jet project to about 600 billion won (US$439 million), South Korea's defense procurement agency said on Friday.
South Korea's Defense Acquisition Program Administration (DAPA) said in a statement that DAPA and Indonesia's defense ministry officials signed an agreement this week concerning the KF-21 jet development project.
The Defense Ministry did not respond immediately to a request for comment.
A decade ago, South Korea and Indonesia agreed to jointly develop the jet in a project worth 8.1 trillion won, with Jakarta agreeing to pay about 1.6 trillion won.
However, Jakarta has since sought to renegotiate the deal, and last August Seoul decided to lower Jakarta's financial commitment to 600 billion won, as well as to make adjustments to its technology transfer plan, according to DAPA.
Although the two countries agreed on the amount, additional discussions are needed on the payment deadline and the specific scope of tech transfer, Yonhap news agency said.
The Defense Ministry told DAPA it is undergoing administrative process to pay its remaining contribution to the KF-21 project, DAPA said.
"If the contributions are paid as planned, we expect the defence cooperation between the two countries will gain momentum again," the agency said.
