DAPA approves plan to reduce Indonesia's financial contribution to KF-21 fighter project

Korea's state arms procurement agency said Friday it had approved a plan to reduce Indonesia's contribution to the development of the KF-21 advanced supersonic fighter by almost two-thirds.

The two-seat fourth prototype of the Korea-developed KF-21 fighter jet takes flight from the Air Force's 3rd Flying Training Wing in Sacheon, South Gyeongsang, in February 2023. [DEFENSE ACQUISITION PROGRAM ADMINISTRATION

Korea's state arms procurement agency said Friday it had approved a plan to reduce Indonesia's contribution to the development of the KF-21 advanced supersonic fighter by almost two-thirds.

Under the new payment schedule approved by the Defense Acquisition Program Administration (DAPA), Indonesia is to pay 600 billion won ($440 million) toward the development of the KF-21, instead of the 1.6 trillion won it first pledged when the project launched in 2015.

Indonesia's initial contribution represented approximately 20 percent of the 8.1-trillion-won cost of the KF-21 development project, which has often been described as the most expensive defense project in Korean history.

DAPA recently said that the cost of developing the supersonic fighter is likely to top out at 7.6 trillion won.

Under the terms of the original deal, Jakarta was due to receive one prototype and technical data, as well as the right to build 48 jets in Indonesia.

A DAPA official who spoke to reporters on condition of anonymity said that the shortfall that results from the reduction of Indonesia's contribution "will be jointly covered by the [Korean] government and the company," referring to KF-21 manufacturer Korea Aerospace Industries (KAI), the country's sole aircraft manufacturer.

The official also said that technology transfers to Jakarta "will be limited to within the 600-billion-won range" of Indonesia's reduced contribution, which includes 380 billion won that has already been paid.

The officials clarified that Jakarta would be required to pay more if the value of the technology transfers and the prototype exceeds its new contribution amount.

KAI plans to build 20 KF-21 aircraft this year and 20 more next year, with the Korean Air Force due to receive its first batch of the jets in the latter half of 2026.

The KF-21, also known by its Korean name Boramae, is a 4.5-generation fighter jet on par with the latest F-16 but less stealthy than the fifth-generation Lightning II developed by Lockheed Martin.

The domestically developed aircraft is intended to replace the Korean Air Force's aging Northrop F-5s and its McDonnell Douglas F-4s, the last of which were retired in June.

Development of the KF-21 required Korean engineers to localize several key technologies to produce a viable indigenous stealth fighter, including the active electronically scanned array (AESA) radar system, infrared search and tracking system, electro-optical targeting pods and radio frequency jammers.

BY MICHAEL LEE [lee.junhyuk@joongang.co.kr]