Indonesia Reaffirms Commitment to Pay 20% of KF-21 Fighter Development Costs
November 11, 2021
through Alessandra giovanzanti
On April 9, KAI unveiled the first of six prototype KF-21 fighters. The platform is expected to make its maiden flight in 2022, with serial production of the aircraft set to begin in 2026. (DAPA)
The Indonesian Ministry of Defense has reaffirmed its commitment to fund 20% of the development costs of the KF-21 / IF-X multirole fighter aircraft, with around 30% of its contribution to be paid in kind, the Administration of the South Korea’s Defense Acquisition Program (DAPA) announced on November 11.
The announcement is part of an agreement that was reached between South Korean and Indonesian officials at the sixth bilateral working level meeting held in Jakarta.
“The negotiations have been concluded in a manner which is mutually beneficial to both countries through sufficient bilateral consultations” and the agreement “is expected to contribute to the rapid stabilization of the joint development program as well as the resolution of unpaid contributions. by Indonesia â, director of DAPA. Kang Eun-ho was quoted as saying.
The DAPA did not provide information on how and when overdue payments will be processed, only noting that details on the 30% contribution have yet to be defined.
Under the initial agreement – signed in 2016 – Indonesia pledged to pay 20% of the total development costs of the KF-21 / IF-X project – valued at KRW 8,800 billion (7.5 billion US dollars) – through 2028, with South Korea and Korea Aerospace Industries (KAI) covering 60% and 20% respectively.
Specifically, it was agreed that KRW 8.12 billion would be invested in developing the system between 2015 and 2026, while KRW 680 billion would be added between 2026 and 2028 for additional weapons testing.
Already subscribed to Janes? Read the full article via customer login
Interested in subscribing, see what we do
The Indonesian Ministry of Defense has reaffirmed its commitment to finance 20% of development costs …