KUALA LUMPUR, SEOUL— After a two-year delay, Indonesia has resumed paying for development of the KF-X, according to the fighter’s manufacturer, Korean Aerospace Industries (KAI).
Indonesia’s defense ministry paid 132 billion won ($118 million) on Jan. 2, the company said. The payment is part of Indonesia’s 20% share of the estimated development cost: 1.7 trillion won ($1.5 billion) out of a total of 8.7 trillion won.
It is likely the payment was made after South Korean defense ministry officials visited Jakarta late last year. No announcements on the KF-X project were made following the visit, however.
Indonesia had not paid since early 2017, triggering concerns that it could withdraw from the project, which is known in the Southeast Asian country as the IF-X.
“Through the latest payment, we can dispel worries about Indonesia’s potential exit from the project, and we expect the country to actively participate,” KAI said in a press release. Following the payment, Indonesia is to send more engineers to South Korea to work in the development process of the KF-X, KAI said.
The number will increase to 150 by end of 2019; 72 have been stationed in South Korea since December 2013. Indonesian Aerospace has said up to 200 of its personnel had been sent to South Korea on a rotational basis to work on the project since 2013, though by September 2018 only 28 remained there. It said it needed further government funding to send more personnel to South Korea.
KAI did not say whether the payment brought Indonesia’s contributions up to date.
Jakarta has considered opting out of KF-X development, because of funding cost and U.S. export controls that prevent assembly of the fighter in Indonesia; local assembly was a reason for signing up for the program.
The U.S. can impose that restriction because it is the source of KF-X components. It is unlikely that South Korea and Indonesia have solved the issue though they could be renegotiating assembly plans.
In October 2018 Indonesia said it was renegotiating the financial terms of the project after its local currency depreciated sharply against the U.S dollar. It is not known whether the latest payment was the result of the renegotiations.
Indonesia reportedly has planned to buy 50 KF-Xs. South Korea’s requirement is for 120. Development of the initial version is supposed to be complete in 2026. With an empty weight above 11 metric tons (24,000 lb.), the fighter is being designed for the eventual incorporation of stealth features.
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