Seoul, Jakarta to Settle KF-21 Jet Project’s Payments Issue in November

South Korea will conclude negotiations over Indonesia’s overdue of payments in their joint project to build the KF-X fighter jet, in November.

"I am convinced that (talks over) the issue of the overdue payments will be concluded by November. We will finish it by then,” Kang Eun-ho, head of the state arms procurement agency Defense Acquisition Program Administration (DAPA), was quoted as saying by Yonhap News Agency during a parliamentary audit session on Tuesday.

Indonesia had initially agreed to shoulder 20% of the 8.8 trillion won ($7.3 billion), the new fighter’s development cost. But it later stopped making payments, with the amount of the overdue payments currently standing at 704.1 billion won ($586 million).

The working-level talks between the two countries deal with a range of issues, including how and when Indonesia will make the overdue payments. The sixth round of the talks is slated for later this year, according to the DAPA.

Jakarta recently ordered six T-50I trainer jets built by Korea Aerospace Industries (KAI). Kang stressed that it is a sign of the Southeast Asian country’s willingness for technological and industrial cooperation with Korea.