Indonesia has ran up an arrears of 230 billion won (US$200 million) by skipping milestone payments as part of its participation in the South Korean-led KF-X project to develop a new fighter jet for use of the air forces of both countries.
Further Indonesia has ‘stayed away’ from the aircraft development program since the latter half of 2017, calling for the renegotiation on the terms of contract, Seoul's arms agency confirmed Monday.
However, Indonesian Investment Coordinating Board (BKPM) head Thomas Lembong had said last week in Jakarta that while renegotiations were under way, Indonesia would disburse funds for the project to assure that Indonesia was committed to proceeding.
The Indonesian government had a total of 230 billion won (US$200 million) in arrears as of June, according to the Defense Acquisition Program Administration (DAPA), whose spokesman Kang Hwan-seok told this to reporters in Seoul today.
Indonesia has an agreement with South Korea to pay for 20 percent of the cost to develop a 4.5 generation fighter jets by 2025. In return Indonesia would get a prototype and the rights to manufacture the aircraft in Indonesia.
"There was a request (from Indonesia) to negotiate" its contribution, the DAPA spokesman told reporters here sparking concern s about the future of the KF-X project, although Kang said there's no immediate threat of Indonesia’s withdrawal from the program.
There are also concerns that denial of four crucial technologies by the United States relating to radar and fire control system among others would delay the project as South Korea has vowed to develop these on its own.
It is not known if South Korea has agreed to renegotiate the financial participation of Indonesia in the wake of reports that the project cost might exceed the original budget.
Indonesia has indicated it wants to re-negotiate terms of payment for its participation in the joint KFX/IFX fighter jet project with South Korea. South Korea is developing the KF-X project as a successor to its F-16 aircraft and has roped in Indonesia to share the development cost in return for a fixed number of aircraft and technology
Saab has received an order for support of algorithm development and evaluation of airborne AESA radar for South Koreas indigenous KF-X fighter jet. The radar development programme is led by the Korean Agency for Defence Development (ADD) and Saab will work in cooperation with ADD and its contractual partner LIG Nex1
South Korea and Indonesia have signed a US $1.3 billion deal to jointly develop the next generation fighter jet KF-X for Seoul amid rising threats from the nuclear-armed North Korea
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A mock-up of the S Korean KFX Jet displayed for the first time at the ADEX 2019 event in Seoul has raised eyebrows as it does not have the moniker of its Indonesian partner. The 4
Design of South Koreas combat jet, the KF-X, has been finalised and prototype of the jet will be ready in about two years from now. The cost of the development project, pegged at 8
The Indonesian Ministry of Defense has signed a contract to buy eight Airbus H225M heliopters and nine Bell 412EPI helicopters for its Air Force from state-owned PT Dirgantara. The contract was signed on Wednesday by PTDI's Commercial Director, Irzal Rinaldi and Head of the Defense Facility Agency (Kabaranahan) of the Indonesian Ministry of Defense, Rear Admiral TNI Agus Setiadji
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