Prabowo will renegotiate combat aircraft development costs with South Korea

JAKARTA, KOMPAS.com – The Indonesian government through the Ministry of Defense (Kemenhan) plans to renegotiate the financing of the manufacturing program fighter Korean Fighter Xperiment/Indonesia Fighter Xperiment (KF-X/IF-X).

This renegotiation step was carried out after Indonesia was previously reported to have experienced delinquency in the cost of the joint project.

“Currently, the government will renegotiate the next phase related to cost share that must be paid by the Government of Indonesia, including renegotiation related to the sustainability of the project, “said the spokesman for the Minister of Defense Prabowo Subianto, Dahnil Anzar Simanjuntak in his statement, Tuesday (7/9/2020).

Also read: Mahfud MD Ensures that KFX-IFX Project Talks with South Korea Continue

Dahnil said, in 2017, President Joko Widodo had ordered a renegotiation related to the KF-X / IF-X project.

However, at that time the government had not agreed to renegotiation South Korea.

“Renegotiation at that time, the Government Carousel have not agreed to our request regarding the decline cost share Indonesia from 20 percent to 15 percent, but only got a reduction to 18.8 percent, “said Dahnil.

Previously, a South Korean (South Korean) official revealed that Indonesia was in arrears of 500 billion won or equivalent to Rp. 6.2 trillion in the KF-X / IF-X fighter aircraft manufacturing program.

Quoted Yonhap News Agency on Monday (7/9/2020), Indonesia joined the KF-X project in an effort to procure aircraft for its air force.

Also read: Indonesia Reportedly in Arrears of Rp. 6.2 Trillion in the Combat Aircraft Project with South Korea

Its aim is to advance the aerospace industry. Where Indonesia has agreed to bear 20 percent of the project development costs of 8.8 trillion won, which is around 1.7 trillion won or around Rp. 21 trillion.

A South Korean official who declined to be named said that if the arrears in the Indonesia-South Korea cooperation program should have been paid by the end of August 2020.

“Little progress has been made in terms of working with Indonesia on the KF-X project,” said one official.

Also read: KF-X Combat Aircraft Project and South Korean Technology Hegemony over Indonesia

Prabowo Subianto met with the South Korean Defense Minister, Jeong Kyeong-doo in December 2019.

This meeting is also an attempt to advance the fighter project.

However, despite such financial troubles, the KF-X project has proceeded without a hitch.

Earlier this week, South Korea began final assembly of its first prototype jet after final confirmation of last year’s design.

According to the Defense Acquisition Program Administration (DAPA), the prototype is targeted to be launched in the first half of 2021.

The development of the KF-X aircraft is known to have started by the Government of Indonesia and South Korea on March 9, 2009.

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