Indonesia's F-15EX purchase plans spark speculation over possible KF-X withdrawal

Final assembly of the KF-X fighter aircraft takes place at the Korea Aerospace Industries (KAI) complex in Sacheon in preparation for a test flight during the first half of 2021. (KAI website)

Indonesia’s announcement of plans to purchase F-15EX and Rafale fighter aircraft is raising questions over whether it intends to back out of the KF-X fighter development program.

Fadjar Prasetyo, chief of staff of the Indonesian Air Force, was quoted by the daily Kompas and other Indonesian news outlets as announcing plans at a recent annual meeting of military leaders to acquire a wide range of modern defense capabilities between 2021 and 2024, including US-made F-15EX and French-made Rafale aircraft.

Prasetyo also said the defense capabilities would be introduced in phases and include tanker and transport aircraft and medium-altitude long-range unmanned aircraft.

The problem is that as Indonesia goes about introducing foreign aircraft to beef up its defense capabilities, it has also been putting off payments of its share in the KF-X fighter development program following a past funding agreement with South Korea.

In a Feb. 17 report to the National Assembly National Defense Committee, the Defense Acquisition Program Administration (DAPA) said that Indonesia had agreed to contribute a total of 1.76 trillion won (US$1.60 billion) in stages, representing 20% of the cost of the KF-X development program.

But of the 831.6 billion won (US$753.1 million) that it was supposed to pay through February, it had only paid 227.2 billion won (US$205.7 million), leaving 604.4 billion won (US$547.3 million) unpaid, DAPA added.

In exchange for its funding, Indonesia is to receive one prototype aircraft and technological information for the local production of 48 others once KF-X development is completed in 2026.

The reasons behind Indonesia postponing its share of costs remain unclear. Sources in and around the military have speculated that it may not be possible to transfer key technology for the KF-X aircraft currently under development, as most of it is connected with the US.

Meeting with reporters on Feb. 9, DAPA Minister Kang Eun-ho said, “We’re continuing to sound out each other’s positions.”

“Negotiations are still going on. We’ll provide information when the time is right,” he added.

DAPA has been working hard to address concerns about possible setbacks in the KF-X development program following Indonesia’s announcement of plans to purchase the F-15EX and other aircraft.

“Indonesia’s plans to acquire the F-15EX and Rafale are understood to be separate from the joint development of the KF-X aircraft,” DAPA said, explaining that they were “activities that Indonesia had already been pursuing to compensate for inadequate Air Force capabilities.”

It also said that Indonesia has “expressed its commitment to continued participation in the KF-X development program.”

“The two countries have been negotiating toward a mutually beneficial arrangement through several rounds of working-level discussions,” it added.

By Park Byong-su, senior staff writer

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