Korea signs KF-X deal with Indonesia

By Jun Ji-hye

Korea signed a tentative deal Sunday with Indonesia, under which the Southeast Asian country will pay 20 percent of the 8.5 trillion won cost for the KF-X project.

The KF-X project is aimed at developing indigenous fighter jets by 2025 to replace the Air Force’s aging fleet of F-4s and F-5s.

Korea Aerospace Industries (KAI), the nation’s sole aircraft maker, announced that it has signed two separate deals with the Indonesian government and its state-run defense company PT Dirgantara Indonesia (PTDI) in Seoul.

Under the deal, Jakarta will invest some 1.7 trillion won in the project and would participate in the process of design and component production. It would also acquire one prototype and technology data afterward.

The deal with the Indonesian government was about cost sharing, while the one with PTDI called for work sharing.

The government plans to spend 8.5 trillion won in the KF-X project and an additional 10 trillion won to produce 120 jets.

KAI was selected as the preferred bidder for the project over Korean Air in March.

In October last year, Jakarta agreed with Seoul to participate in the project.

A Defense Acquisition Program Administration (DAPA) official explained that a formal contract will be signed after approval from the Defense Acquisition Program Executive Committee.

The signing removed concerns over allegations that Indonesia was re-considering the deal after Korea failed to receive four core technologies related to the F-35 stealth fighter from U.S. defense giant Lockheed Martin.

“The KF-X in which a total of 18 trillion won will be invested will come back with a result worth more than 180 trillion won,” KAI president and CEO Ha Sung-yong said.

The company said its goal is to sell more than 1,000 jets after development is complete.

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