Indonesia proposes cutting payments for S.Korea fighter jet project, Yonhap reports

Korea Aerospace Industries

06/05/2024 03:15

SEOUL, May 6 (Reuters) - Indonesia has proposed to cut
its share of payments for a joint fighter jet development
project with South Korea to about one-third of the originally
agreed amount, South Korean news agency Yonhap reported on
Monday. 
    Indonesia recently suggested to the South Korean government
that it would pay about 600 billion won ($442.47 million) for
the KF-21 joint fighter jet project, Yonhap reported, citing
multiple unnamed government sources. 
    The original amount due for Indonesia's share of the joint
fighter project was set to be at about 1.6 trillion won by June
2026, the report said. 
    "In order to successfully complete the development of the
KF-21 system, the governments of both South Korea and Indonesia
are conducting final negotiations to resolve the current cost
sharing issues," South Korea's Defense Acquisition Program
Administration said in a statement to Reuters.
    Indonesia's defence ministry did not immediately respond to
a request for comment.
    The KF-21 fighter jet developed by Korea Aerospace
Industries (KAI)  047810.KS  in a project partially backed by
Indonesia is designed to be a cheaper, less stealthy alternative
to the U.S.-built F-35, on which South Korea relies. 
    Indonesia said it would receive fewer technology transfers 
from South Korea as part of its move to cut its financial
contribution, Yonhap reported. 
    South Korea and Indonesia resolved in 2022 a dispute over
funding for the joint fighter jet project worth more than 8
trillion won after Indonesia had halted payment of its 20% share
of the development costs. 
    The Indonesian government's latest proposal comes after
South Korea police raided KAI's head office in March in
connection with two Indonesian nationals accused of leaking
technology related to the KF-21 fighter jet project. 
($1 = 1,356.0200 won)

 (Reporting by Heekyong Yang in Seoul and Stanley Widianto in
Jakarta; Editing by Jamie Freed)
 ((Heekyong.Yang@thomsonreuters.com;))