Indonesia to Receive One KF-21 Prototype After Scaling Back Joint Fighter Project with South Korea

Seoul and Jakarta are finalizing the transfer of one KF-21 fighter jet prototype to Indonesia. The move ends a decade of negotiations over a 2015 co-production agreement that once called for Indonesia to build dozens of the jets at home. Defense Logistics Agency head Yusuf Jauhan stated in late June that domestic production plans will not proceed.

Indonesian authorities confirmed in April and again in June that the government had scrapped the KF-21 co-production program. Indonesia initially agreed to cover 20 percent of development costs, then priced at 1.6 trillion won. After requesting an extension of payments until 2034, which South Korea rejected, the two sides reduced Indonesia's contribution to 600 million won with sharply reduced technology transfer.

Indonesia completed payment of that amount and will receive one single-seat prototype in return. The KF-21 Boramae is a twin-engine fighter developed by Korea Aerospace Industries to replace South Korea’s F-4 and F-5 fleets. The original deal had envisioned technology transfer allowing PT Dirgantara Indonesia to produce 48 KF-21 Block-I jets in Bandung.

PT Dirgantara Indonesia stated that internal discussions on procurement plans are ongoing and no definitive plan has been established. Officials in Jakarta are considering other fighter options and have already ordered 42 Dassault Rafale jets under a 2022 contract.

In April, Indonesia signed an overseas loan scheme to purchase 48 KAAN stealth jets from Turkish Aerospace Industries for $10 billion, with deliveries beginning in 2032.