Korea's KF-21 fighter jet closes in on 1st export deal with Indonesia

President Lee Jae Myung and Indonesian President Prabowo Subianto shake hands ahead of their summit held on the sidelines of the Asia-Pacific Economic Cooperation Economic Leaders' Meeting at the Gyeongju Hwabaek International Convention Center in Gyeongju, North Gyeongsang Province, Nov. 1, 2025. Courtesy of Cheong Wa Dae

Korea is on the verge of clinching its first export deal for the domestically developed KF-21 Boramae fighter jet, with Indonesian President Prabowo Subianto expected to visit the jet's manufacturer during a state visit later this month to sign a preliminary agreement, industry officials confirmed Thursday.

“Indonesian President Prabowo Subianto will be visiting Korea to meet with Korean President Lee Jae Myung and have a ceremony for signing an agreement,” an industry official told The Korea Times, Thursday. “The two countries will be having a ceremonial event together.”

Indonesia plans to purchase 16 fighter jets in the first order — down from the originally planned 48 — due to budget constraints, Asia Business Daily reported Thursday. Subianto is scheduled to visit Korea Aerospace Industries (KAI), the Sacheon, South Gyeongsang Province-based manufacturer of the jet, during his state visit from March 31 to April 2. The two sides aim to finalize an implementation contract in the first half of this year.

The deal would mark a milestone for the KF-21 project that began in 2015 with a total development investment of 8.1 trillion won ($5.9 billion) to develop homegrown fighter jets. An additional 8.4 trillion won is expected to be spent on mass production between 2026 and 2028, making it the largest defense investment of its kind in Korean history.

The road to the agreement, however, has been far from smooth as Indonesia repeatedly delayed its scheduled payments and ultimately reduced its contribution to 600 billion won — about one-third of the original amount — along with accepting a lower level of technology transfer.

Jakarta initially agreed to fund about 20 percent of the project in exchange for 48 IF-X aircraft, the Indonesian variant of the fighter jet, to be produced through technology transfer.

Also, the Southeast Asian nation's renewed diplomatic engagement with Pyongyang has raised concerns in Seoul over the possible breach of sensitive technology related to the fighter jets.

Jakarta's pursuit of other fighter jets, including France's Rafale and Turkey's Kaan, during the same period signaled a hedging strategy that compounded doubts about its commitment to the KF-21 program.

Despite those concerns, defense industry officials said the agreement would mark a symbolically important first step, but cautioned that the real measure of success lies in whether an implementation contract is signed and follow-on orders materialize.

Indonesia’s accumulated agreements constitute the largest defense deal in the Association of Southeast Asian Nations region, with its total defense contracts reportedly amounting to as much as $4.3 billion.

A KF-21 fighter jet is seen in this Aug. 23, 2025, photo provided by the Korean Air Force. Newsis

The KF-21 Boramae, classified as a 4.5-generation fighter jet, completed its flight test program in January after more than 1,600 test flights since the first prototype rolled out in April 2021. The program is slated for completion in 2026, with the jets intended to replace Korea's aging F-4 and F-5 fleets.

One of the country’s key defense strategies, the development plan of KF-21 was originally initiated by the late former President Kim Dae-jung in November 2000 as part of the plan to make Korea one of the leading industrial powers in the world.

The initiative had been stalled for years, but progress accelerated after the Defense Acquisition Program Administration, the state arms procurement agency, signed a development contract with KAI.

Subianto’s upcoming visit will also include bilateral talks with Lee on strengthening the Korea-Indonesia Special Strategic Partnership, covering trade, defense, artificial intelligence, energy and cultural industries, according to Cheong Wa Dae.

The visit will mark Subianto’s return to Korea about five months after his previous visit in October 2025, when he attended the Asia-Pacific Economic Cooperation summit in Gyeongju, North Gyeongsang Province, and held bilateral talks with Lee.