Indonesia and ROK have signed a new agreement reducing Jakarta’s financial burden while preserving its role in KF 21 fighter production and procurement.
Indonesia and Republic of Korea (ROK) have signed a revised agreement covering the delivery of 48 KF-21 Boramae fighter jets, preserving Jakarta’s participation in the joint development and production program. The signing happened on June 10, 2025, during the Indo Defence 2025 show in Jakarta. ROK Defence Minister Shin Won-sik, Indonesian Defence Minister Sjafrie Sjamsoeddin, and DAPA Administrator Seok Jong geon attended the ceremony.
The new deal cuts Indonesia's financial obligation from about $1.17 billion to about $438 million. It also adds new ways to pay, such as using commodities like palm oil and coffee to make partial payments.
Indonesia is expected to pay 21.9 million within 90 days, having already transferred $6.86 million as an initial instalment.
Despite earlier payment delays, the revised deal maintains Indonesia’s allocation of 48 aircraft and confirms continued involvement of PT Dirgantara Indonesia (PTDI) in parts production and future maintenance. As part of its business, PTDI will make parts for the fuselage and airframe.
The deal is also part of a bigger restructure of the program. In March 2024, Hanwha Aerospace took over as the main contractor from Korea Aerospace Industries (KAI).
The revised terms provide a clearer financial roadmap, ensuring uninterrupted progress of the KF-21’s development and export potential.
The KF-21 program, initiated in 2015 following a 2010 memorandum of understanding, is currently in the prototype testing phase. Six aircraft are undergoing flight trials, including supersonic flight and weapons integration. The ROK Air Force plans to use this plane instead of the F-4 and F-5 fighters, and mass production is planned to start by the end of 2026.
Indonesia is still the only foreign partner in the KF-21 program thanks to this deal. It keeps its operational capabilities and access to industry while lowering its costs. The settlement takes away a big question for ROK and makes the platform more credible in the global market. Countries in Southeast Asia, the Middle East, and Africa might be prospective markets for KF-21 exports.
Author: Özgür Ekşi
