What forms of defense industry cooperation did Korea and Indonesia discuss?

Officials discussed joint development of defense assets, local production and joint arms exports to third-party markets. They also considered ways to diversify partnership models between the two countries’ defense firms.

What is Indonesia’s role in the KF-21 fighter jet project, and how was its contribution revised?

Indonesia joined Korea in developing the KF-21 under an agreement linking its share of development costs with technology transfers to Jakarta. After Indonesia sought to reduce its contribution in exchange for reduced technology transfers, the two sides agreed to lower its investment to 600 billion won, roughly a third of the original commitment.

What follow-up steps did Korea and Indonesia plan for their defense industry cooperation?

DAPA said it plans to establish regular public-private consultative channels to support exchanges and cooperation between the countries’ defense industries. The meeting was followed by a business-to-business session where industry officials explored future joint project opportunities.

Korea, Indonesia discuss diversifying defense industry cooperation

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Summary

Korean and Indonesian officials discussed diversifying defense industry cooperation in Jakarta on Wednesday, including joint development, local production and arms exports to third markets. The Defense Acquisition Program Administration and Indonesia’s defense ministry also reviewed ongoing projects and follow-up steps. DAPA described Indonesia as a strategic partner in defense technology, not merely a buyer of military hardware. The agency plans regular public-private consultations, and industry officials held a business-to-business exchange.

Key Facts

The meeting was led by officials from DAPA and Indonesia’s defense ministry.
Indonesia’s agreed contribution to the KF-21 project was cut to 600 billion won, roughly a third of its original commitment.
The KF-21 partnership links Indonesia’s development-cost sharing with technology transfers to Jakarta.
DAPA said the two sides reviewed major ongoing defense cooperation projects and discussed steps to implement them.
Industry officials explored future joint defense industry projects during a business-to-business session after the meeting.

By Yonhap

Published Nov 11, 2026 3:28 pm KST

President Lee Jae Myung (R) shakes hands with Indonesian President Prabowo Subianto ahead of an expanded session of their summit at Cheong Wa Dae in Seoul, April 1, 2026 file photo. Yonhap

Korea and Indonesia on Wednesday discussed efforts to diversify their defense industry cooperation, including co-development of defense assets and joint arms exports to third markets, Seoul's arms agency said.

The topics were addressed during a regular bilateral meeting on defense industry cooperation in Jakarta, led by officials from the Defense Acquisition Program Administration (DAPA) and Indonesia's defense ministry, DAPA said.

"Officials discussed ways to diversify partnership models between the two countries' defense firms, including joint development, local production and joint exports to third-party markets," the arms agency said.

Both sides also reviewed the status of major ongoing defense cooperation projects and discussed follow-up steps to implement them, it added.

Korea has been developing its indigenous KF-21 fighter jet in partnership with Indonesia under an agreement to share development costs in exchange for technology transfers to Jakarta.

But the project had hit snags as Jakarta sought to scale back its financial contribution in exchange for a reduced transfer of technology. The two sides reached a compromise last year to cut Indonesia's share of investment to 600 billion won ($448.3 million), roughly a third of the original commitment.

"We reaffirmed Indonesia remains a strategic defense technology partner from joint research and development to production, rather than a mere buyer of military hardware," DAPA said.

Going forward, DAPA said it plans to establish regular public-private consultative channels to support exchanges and cooperation between the two countries' defense industries.

Wednesday's meeting was followed by a business-to-business exchange session, during which industry officials explored future opportunities for joint defense industry projects, according to DAPA.

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