The government has effectively agreed to transfer one prototype of the Korean fighter jet KF-21 to Indonesia, a co-developing country. There are a total of six prototypes.
According to materials the Defense Acquisition Program Administration submitted to People Power Party lawmaker Kang Dae-sik's office on the National Defense Committee on the 7th, Korea and Indonesia held working-level talks in February on a plan for value transfer in the KF-21 joint development project and agreed on transferring one prototype.
The Korean government must carry out a value transfer equivalent to the 600 billion won share that Indonesia bore during the KF-21's development. The government plans to compose the 600 billion won as one unit of Prototype No. 5 valued at 350 billion won, 172.4 billion won for participation fees and technology transfer, and 75.8 billion won for development data, among others.
Prototype No. 5 is a single-seat aircraft with one pilot. After its first flight in May 2023, it was used to verify key avionics such as the active electronically scanned array (AESA) radar and for aerial refueling tests.
Initially, Indonesia was to shoulder about 1.6 trillion won, or 20% of the total development cost, in return for a corresponding value transfer. However, citing economic difficulties, it fell into arrears and ultimately reduced its contribution to 600 billion won last year.
To date, Indonesia has paid 536 billion won of the total 600 billion won contribution and plans to pay the remaining 64 billion won in full by June this year.
Separately from the prototype transfer, Korea is also reportedly in talks with Indonesia to export 16 KF-21s.