(DEFENCE SECURITY ASIA) — South Korea’s defense authorities have approved a plan to reduce Indonesia’s financial contribution to the KF-21 “Boramae” fighter jet development project to 600 billion won (US$440 million), approximately one-third of the original amount, according to the country’s defense acquisition agency.
Yonhap News Agency reported that the Defense Project Promotion Committee supported the plan to lower Indonesia’s financial contribution amid concerns about Jakarta’s commitment to the KF-21 project due to repeated payment delays by the Southeast Asian nation.
Indonesia had originally agreed to pay 1.6 trillion won, representing 20 percent of the 8.1 trillion won program launched in 2015 to develop the advanced 4.5-generation supersonic fighter jet.
However, Indonesia has so far only contributed around 380 billion won and recently requested to reduce its financial contribution to 600 billion won.
South Korea’s Defense Acquisition Program Administration (DAPA) stated that the plan includes measures to secure the shortfall in funds but did not provide further details.
The agency said the approval took into account various factors, including bilateral relations and the feasibility of securing the necessary funds, adding that it aims to conclude cost-sharing negotiations with Indonesia amicably.
Despite payment delays, the project remains on track to deliver advanced fighter jets designed to replace South Korea’s aging Cold War-era F-4 and F-5 jets to the Air Force by 2026.
In June, Korea Aerospace Industries Ltd (KAI), the country’s sole fighter jet manufacturer, signed a 1.96 trillion won deal with DAPA to begin production of 20 KF-21 jets.
The KF-21 fighter jet development program is reportedly 80 percent complete at this stage.
The Republic of Korea Air Force (ROKAF) plans to operate up to 100 to 120 KF-21 “Boramae” fighter jets by 2032 to replace its aging fleet of F-4 “Phantom” and F-5 fighters.
The KF-21 “Boramae” is expected to become the “backbone” of ROKAF, playing a crucial role in any potential conflict on the Korean Peninsula.
The KF-21 prototype successfully made its maiden flight in 2022 and has since embarked on approximately 2,000 test flights to evaluate various systems and components.
Launched in 2015, the KF-21 development program is estimated to cost US$6.59 billion (RM26.36 billion).
KAI plans to deliver 20 KF-21 Block 1 jets designed for air-to-air missions by 2026, followed by 80 Block 2 jets for air-to-ground missions in the next phase.
The South Korean aerospace giant also reportedly intends to begin exporting the KF-21 “Boramae” to interested customers.
KAI has already identified several countries as potential customers for the KF-21 fighter jet, particularly those that currently operate the FA-50/T-50 light fighters, such as Thailand, the Philippines, Iraq, Poland, and Malaysia.
With an estimated unit price of US$65 million (RM306 million), as reported by international defense media, the KF-21 (likely Block 10) is priced lower than other 4.5-generation fighters like the Rafale and Eurofighter Typhoon. — DSA