Indonesia drops KF-21 co-production plans
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Indonesia's Defense Logistics Agency head Yusuf Jauhan confirmed in late June that domestic production of the KF-21 Boramae fighter will not materialize, ending a decade-long push under the 2015 co-production agreement with Seoul.
- The 2015 deal required Indonesia to cover 20% of development costs (1.6 trillion won / $1.3 billion) until 2026, in exchange for one prototype and technology to produce 48 KF-21 Block-I jets at state-owned PT Dirgantara Indonesia in Bandung.
- The agreement collapsed under delayed payments and allegations of sensitive data theft; in 2024, Jakarta sought to extend payments to 2034, but Seoul declined, leading to a reduced contribution of 600 million won that significantly cut tech transfer coverage.
- Indonesia settled the 600 million won commitment in exchange for a single-seat KF-21 prototype, with officials stating they now prefer purchasing ready-made jets over local manufacturing.
- Hyung-Ju Kim, president of the Security Management Institute, said Indonesia's decision "appears to be largely practical and financial," noting Jakarta "may still want the aircraft, but not necessarily the burdens of local co-production."
- Indonesia is exploring alternative procurement, including 24 additional Dassault Rafale jets from France (supplementing 42 ordered in 2022) and 48 KAAN stealth jets from Turkish Aerospace Industries worth $10 billion under an April loan deal, with deliveries beginning in 2032.
Why it matters: Indonesia abandoned its 20% share of the $1.3 billion KF-21 development program, settled for a single prototype plus slashed tech transfer, and is now steering its fighter procurement toward France's Rafale and Turkey's KAAN — leaving Seoul without its flagship co-production partner for the KF-21's export campaign.
