South Korea will reduce Indonesia’s funding commitment on the joint KF-21/IF-X fighter programme, removing a long-running irritant between the two partners.
Jakarta’s financial share will be reduced to W600 billion ($441 million) of the programme’s W8.1trillion development cost, says Seoul’s Defense Acquisition Program Administration (DAPA).
This is down from the previous figure of W1.6 billion, or 20% of development costs for the twin-engined fighter that is now undergoing flight tests.
As a result of its reduced commitment, Indonesia will receive less technology transfer. It is also not clear if Indonesia will still get one of the six KF-21 prototypes, with media reports suggesting that the reduced funding level will not cover this.
Indonesia has consistently lagged on payments and has long sought adjustments. South Korean media reports suggest that Jakarta has only paid W380 billion so far.
DAPA suggests that the overall relationship with Indonesia, an important market for South Korean defence equipment – including Korea Aerospace Industries’ FA-50 light combat aircraft – influenced its decision.
“We have comprehensively considered the possibility of securing insufficient financial resources and the cooperative relationship between the two countries, such as the mass production of Indonesian [IF-X] fighters,” says DAPA.
“We will successfully conclude the cost-sharing negotiations with the Indonesian side so that the project can be successfully completed in line with the public’s expectations. Through this project, we expect to secure independent fighter development capabilities and contribute to the rapid deployment of combat aircraft and defence industry exports.”
The move to relieve financial pressure on Indonesia comes two months after DAPA chief Seok Jong-gun told the Korea JoongAng Daily that Indonesia could be dropped from the programme based on an investigation into the alleged theft of sensitive KF-21 data by Indonesian engineers working on the programme in South Korea.
The status of the investigation – and its bearing on Indonesia’s ultimate involvement in the programme – is not clear.
Original plans had called for Indonesia to obtain 48 KF-21/I-FX fighters, but Jakarta’s ordering of 48 Dassault Aviation Rafales and its memorandum of understanding for 24 Boeing F-15EXs have raised doubts about its commitment to the South Korean type.
KOREAN AIR, L3HARRIS TALK UP LOCAL CREDENTIALS IN AEW&C BID
Korean Air and L3Harris recently held an “L3 Industry Day” in Seoul related to their joint bid in a competition for four additional airborne early warning and control (AEW&C) aircraft, says Korean Air.
The two companies are pitching an aircraft named the Phoenix AEW&C, based on the Bombardier Global 6500. In addition to Korean Air and L3Harris, companies attending the event included Elta Systems, LIG Nex1, Yonhap Precision, and Hanul Systems.
“Korean Air will participate in the entire production of air traffic control aircraft to be introduced in the future, including modification, mass production of parts, and personnel training for actual operation,” says Korean Air.
Rivals for the project include Boeing with the E-7 Wedgetail – a type already in service with the Republic of Korea Air Force – and Israel Aerospace Industries (IAI) with its Conformal Airborne Early Warning and Control System. The heart of IAI’s offering is the ELW-2085 radar array that is in service with Israel, Italy and Singapore. Saab also is promoting its Global 6500-based GlobalEye for the South Korean requirement.
