South Korea announced on Friday a reduction in Indonesia’s financial contribution to the KF-21 fifth-generation fighter jet development project, cutting it to $440 million.
Under the new agreement, Indonesia’s commitment has been lowered from 1.6 trillion won ($1.18 billion) to 600 billion won ($440 million), according to South Korea’s defense authorities as reported by Yonhap News.
Originally, Indonesia had agreed to cover 20% of the 8.1 trillion won ($6.1 billion) program, which began in 2015. Jakarta has so far contributed approximately 380 billion won ($279 million).
A South Korean defense official stated that the shortfall will be covered by the South Korean government and Korea Aerospace Industries Ltd, with the government bearing the larger portion.
Additionally, technology transfers to Indonesia will be adjusted to align with the new financial commitment.
Seoul plans to commence production of the KF-21 jets later this year, with an expected deployment by 2032.
Source: AA