South Korea is discussing financial terms and other responsibilities with Indonesia for their partnership to produce the Korean Fighter Experimental (KF-X) project.
South Korea is in the “final stage” of negotiations with Indonesia over their partnership on a local fighter jet development program and the results will possibly come early next week, the defense procurement agency said yesterday as quoted by Yonhap news.
Kim Si-cheol, spokesman for the Defense Acquisition Program Administration said at a press briefing that "The result is possible for early next week."
Indonesia and South Korea entered into a preliminary agreement last month under which the former will bear 20 per cent of the development cost for the KF-X project in return for 50 aircraft. The project is expected to fructify by 2025.
Indonesian media has reported earlier that the total cost to Jakarta for its share KF-X project and the 50 aircraft would be in the region of US$1.5-2 billion.
Seoul roped in Jakarta for the project after the U.S. refused to approve the transfer of four key fighter jet technologies out of 25 that U.S.-based defense firm Lockheed Martin had offered in an offset deal linked to South Korea's purchase of 40 F-35 Lightning II jets last year.
For the transfer of the remaining 21 technologies, South Korea is currently in discussions with the U.S. firm in Seoul, Kim said, according to Yonhap.