S.Korea Seeks to Resolve KF-21 Payments Impasse with Indonesia

South Korea has initiated talks with Indonesia in an effort to address pending issues related to Jakarta's participation in the KF-21 fighter jet development project.

The Defense Acquisition Program Administration (DAPA) convened discussions on strengthening defense industry cooperation with the ambassadors of Poland and Indonesia on Wednesday, March 27.

During the meeting, DAPA Director Seok Jong-geon engaged in dialogue with Indonesian Ambassador Lee Sang-deok to explore solutions to lingering defense industry matters between the two nations. Among the key topics discussed was Indonesia's contribution to the joint development of the KF-21 fighter jet.

The KF-21 project, initiated in 2015, aimed to create an advanced supersonic fighter jet, with Indonesia committed to covering approximately 20% of its cost by 2026. However, South Korean authorities reaffirmed Indonesia's obligation to fulfill payment by the original deadline, despite reports of Jakarta's request for an extension until 2034.

South Korea's First Deputy Foreign Minister Kim Hong-kyun has recently urged Indonesian Deputy Foreign Minister Pahala Nugraha Mansury to ensure timely completion of the cost-sharing payment for the KF-21 fighter jet development. Reports indicate that Indonesia owes approximately Rp 1 trillion ($746 million) to South Korea, with a request to extend the payment deadline to 2034.