Korean, Indonesian Officials Meet in Jakarta to Revive Stalled KF-21 Project

South Korea’s Defense Acquisition Program Administration (DAPA) chief Seok Jong-gun met with Indonesian Vice Defense Minister Donny Ermawan Taufanto in Jakarta last week to discuss the stalled KF-21 fighter jet project, as unresolved disputes over funding and technology-sharing continue to delay progress.

Seok acknowledged “difficulties due to differing views” but emphasized the need for communication to resolve issues and strengthen bilateral cooperation.

“This meeting is the first high-level meeting since the investigation of the Indonesian technical team, and it served as an opportunity to normalize the somewhat strained atmosphere of defense industry cooperation between the two countries. Through this, we have created momentum for enhancing defense industry cooperation with Indonesia, including the joint development and production of the KF-21 in Southeast Asia, which has great growth potential,” Seok said.

The delays stem from multiple factors, including a 2022 incident in which Indonesian technicians attempted to extract sensitive KF-21 data from Korea without authorization. The incident led to ongoing investigations, with five Indonesian technicians barred from leaving Korea.

Indonesia’s reluctance to finalize a revised cost-sharing agreement has further stalled the project. In 2022, Korea reduced Indonesia’s financial contribution from 1.6 trillion won ($1.2 billion) to 600 billion won, but Indonesia has yet to ratify the new terms, insisting that legal issues surrounding its technicians be resolved first.

The financial deadlock has raised concerns in Korea, as it could impact the KF-21’s 2026 production schedule. The stalemate affects the KF-21 prototype transfer and technology-sharing terms. Jakarta’s failure to procure 48 Indonesia-specific IF-X jets under the agreement could also increase costs for Korea. Despite the tensions, both sides agreed to continue cooperation on the project, explore payment options, and discuss broader defense industry initiatives, including local aircraft production and joint exhibitions.