Korea Aerospace Industries (KAI) has received a W130 billion ($117 million) payment from Indonesia’s defence ministry, suggesting Jakarta’s involvement in the K-FX/I-FX programme is back on track.
KAI confirmed receipt of the payment, in an email to FlightGlobal.
According to official news agency Yonhap, Jakarta had paid no money into the programme since 2017, prompting concerns about its commitment to the twin-engined fighter. Under the terms of the original K-FX/I-FX deal, Jakarta is to foot 20% of the programme’s W8.5 trillion ($7.2 billion) price tag.
“Through the latest payment, we can dispel worries about Indonesia's potential exit from the project, and we expect the country to actively participate,” says KAI.
Jakarta’s commitment appeared to waver in 2018. In October, a team lead by Indonesia’s coordinating minister for political, legal and security affairs Wiranto headed to Seoul to discuss cost concerns.
Since 2014, the Indonesian Rupiah has nearly halved in value against the US Dollar, and has also fallen by nearly a third against the South Korean won.
K-FX is destined to become Seoul’s biggest defence acquisition programme. It will see 120 twin-engined fighters delivered to the country’s air force, and 80 to Indonesia.
Source: FlightGlobal.com
