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Indonesia reaffirms commitment to pay 20% of the KF-21 fighter's development costs

On 9 April KAI unveiled the first of six KF-21 fighter prototypes. The platform is slated to make its maiden flight in 2022, with mass production of the aircraft expected to begin in 2026. (DAPA)

The Indonesian Ministry of Defence has reaffirmed its commitment to funding 20% of development costs for the KF-21/IF-X multirole fighter aircraft, with about 30% of its contribution set to be paid in kind, South Korea's Defense Acquisition Program Administration (DAPA) announced on 11 November.

The announcement is part of an agreement that was reached between South Korean and Indonesian representatives during the sixth bilateral working-level meeting held in Jakarta.

“Negotiations were completed in a way that is mutually beneficial to both countries through sufficient bilateral consultations” and the agreement “is expected to contribute to the quick stabilisation of the joint development programme as well as to resolving unpaid contributions by Indonesia”, Director of DAPA Kang Eun-ho was quoted as saying.

DAPA did not provide information on how or when the overdue payments will be addressed, noting only that details on the 30% contribution have yet to be defined

Under the original agreement – signed in 2016 – Indonesia committed to pay for 20% of the total development costs of the KF-21/IF-X project – valued at KRW 8.8 trillion (USD7.5 billion) – through to 2028, with South Korea and Korea Aerospace Industries (KAI) covering 60% and 20% respectively.

Specifically, it was agreed that KRW8.12 billion would be invested in system development between 2015 and 2026, while KRW680 billion would be added between 2026 and 2028 for additional weapon testing.

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