'No going back' for S.Korea, Indonesia defence cooperation after jet funding dispute

Korea Aerospace Industries

17/02/2023 07:24

By Josh Smith
       SEOUL, Feb 17 (Reuters) - Defence cooperation between
South Korea and Indonesia will  expand, diplomats from the two
countries said on Friday, after a dispute over funding for a
joint fighter jet project was resolved last year.
    Indonesia had halted payments for its 20% share of
development costs for the KFX jet in 2019, casting a cloud over
the 8.1 trillion won ($6.16 billion) project, but it resumed
payment late last year.
    "The project did have some bumps but I think any project of
this scale is bound to have some issues," Eui-hae Cecilia Chung,
South Korea's director general for ASEAN and Southeast Asian
Affairs, said when asked by Reuters about the project during a
briefing at the Indonesian Embassy in Seoul.
    "We’re very happy that the financial contribution from the
Indonesian side was resumed last year, and we are confident that
this will continue," she added. 
    "I think both sides are committed and there is no going back
on this important initiative."
    The next-generation aircraft developed by Korea Aerospace
Industries  047810.KS  (KAI) is designed to be a cheaper, less
stealthy alternative to the U.S.-built F-35, on which South
Korea relies. A prototype of the jet successfully conducted its
first test flight in July.
    "Both sides are already in the same thread to continue this
project, so we can also increase our cooperation especially in
the defence industry," said Riza Hera Wardhana, counsellor for
political affairs at the Indonesian embassy.
    Indonesian Ambassador Gandi Sulistiyanto noted that
Indonesian pilots were in South Korea to train with the new jet.
    "It's showing that the commitment of the two countries is
unchanging," he said at the briefing.
    The KFX project is a cornerstone of South Korea's expanding
defence industry, which signed big deals with Poland, the United
Arab Emirates, and other countries last year. 
    President Yoon Suk-yeol has pledged to step up efforts to
boost the export of weapons and secure cutting-edge defence
technologies as he aims for South Korea to become the world's
fourth-largest arms exporter.
 (Reporting by Josh Smith; Editing by Robert Birsel)
 ((JoshSmith1@thomsonreuters.com;))