South Korea, Indonesia boost defense industry cooperation on ASEAN summit

Trade Minister Yoo Myung-hee, right, and her Indonesian counterpart Agus Suparmanto pose for a photo after signing a joint declaration on the conclusion of the Korea-Indonesia Comprehensive Economic Partnership Agreement, attended by President Moon Jae-in and Indonesian President Joko Widodo at a hotel in Busan, Monday, the first day of this year's ASEAN-Republic of Korea Commemorative Summit from Monday to Tuesday. Yonhap

By Jung Da-min

Defense industry cooperation between South Korea and Indonesia is expected to go further as the leaders of the two countries agreed to elevate bilateral cooperation in defense, the environment and public administration.

On the sidelines of this year's summit between South Korea and ASEAN member nations, President Moon and his Indonesian counterpart Joko Widodo reaffirmed their commitment to upgrading Seoul-Jakarta partnership in various areas on multiple fronts. The bilateral summit between Moon and Widodo was hled Monday, the first day of the 2019 ASEAN-Republic of Korea Commemorative Summit from Monday to Tuesday.

South Korea and Indonesia have become "special" strategic partners to each other, Moon and Widodo noted, highlighting the conclusion of the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA). On the same day, Seoul's Trade Minister Yoo Myung-hee and her Indonesian counterpart Agus Suparmanto released a joint declaration on the conclusion of the CEPA negotiations between the countries.

The two leaders also highlighted the KF-X/IF-X (Korean Fighter eXperimental/Indonesian Fighter Experimental) aircraft project, an ongoing joint fighter jet development project between the two countries.

According to the 2018 Global Defense Market Year Book published by the Defense Agency for Technology and Quality, the Indonesian defense market has continued to grow over the past decade from 2008 to 2017, with the Indonesian government's increased budget support through its 2011-25 Master Plan and Defense Industry Law of 2012. The Indonesian government's $5.5 million investment in PT Pindad, an Indonesian defense firm focusing on land-based systems, was such an example of the country's growing interest in the defense sector.

South Korea has recently become one of the main exporting countries to Indonesia in the defense field, the 2018 report highlighted, selling around $699 million worth of weapons from 2008 to 2017, when Indonesia's total weapons import volume was around $5.39 billion. South Korea was ranked as the fourth-largest exporting country for the period, following Russia, the Netherlands and the U.S.

In 2016, Indonesia's defense ministry signed a 1.6 trillion won ($1.3) deal with South Korean developer Korean Aerospace Industries (KAI), which accounts for 20 percent of the budget under which the South Korean government will contribute 60 percent and defense companies will chip in 20 percent.

A full-sized mock-up of the Korea Aerospace Industries KF-X fighter jet in development is on display at the recent ADEX exhibition held at Seoul Airport in Seongnam, Gyeonggi Province, on the outskirts of Seoul. Korea Times photo by Lee Han-ho

According to the Stockholm International Peace Research Institute's SIPRI Yearbook 2019, published in March, Indonesia and Iraq were the largest importers of South Korean weapons for the period of 2014 to 2018, each accounting for 17 percent of South Korea's weapons sales, followed by the U.K., which accounted for 15 percent.

Indonesia has purchased 16 of KAI's T-50 Golden Eagle advanced trainers and eight of the company's KT-1 Woongbi basic training aircraft. The country has also procured six 1,400-ton class submarines from South Korea's Daewoo Shipbuilding and Marine Engineering, with three of them through a 2011 deal and the others through another deal in April this year.

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