Government accepts Indonesian proposal amid concerns over development setbacks
Review of the origin of technology transfer, including provision of trial period
“Loopholes in development project management” also pointed out
The share of Indonesia, the co-developer of the Korean fighter jet KF-21 (Boramae, pictured), has been finalized to be reduced from the original 1.6 trillion won to 600 billion won. In May, the government decided to accept Indonesia’s proposal to reduce its share.
This policy was approved at the Defense Acquisition Program Administration Committee chaired by Minister of National Defense Shin Won-sik on the 16th. The Defense Acquisition Program Administration announced, “We adjusted Indonesia’s (KF-21) system development contribution to 600 billion won, and deliberated and approved a follow-up plan for adjusting value (technology) transfer and securing insufficient financial resources.”
The total development cost of the KF-21 (excluding weapons) is 8.1 trillion won. In 2016, during the joint development contract, the Korean government, the manufacturer Korea Aerospace Industries (KAI), and the Indonesian government agreed to share 60%, 20%, and 20%, respectively.
However, Indonesia has continued to delay payment of its share, citing economic conditions, and the amount paid so far has been only 400 billion won. Then, in April of this year, it proposed to our government that it would only pay 600 billion won by 2026. In response, the government decided to accept the proposal, judging that if Indonesia’s payment of its share continues to be delayed, it could affect the development schedule of the KF-21.
In the end, there are observations that it will be difficult to provide Indonesia with a prototype as the contribution has been reduced to one-third, and that technology transfer will also be limited to a summary level. A Radiation Agency official said, “Since Indonesia’s contribution reduction has been confirmed, we will proceed with negotiations (with Indonesia) from the beginning regarding the level of technology transfer.”
According to the Agency for Defense Development, if costs are reduced during the development of the KF-21 and Indonesia’s share is reduced, the additional cost we will have to bear will be around 500 billion won. The Agency for Defense Development is currently negotiating with KAI about their respective share ratios.
As a result, some point out that the loopholes in development project management have been exposed as the shortfall is covered by taxpayers’ money and corporate funds.
In January, suspicions were raised that Indonesian engineers dispatched to KAI had leaked KFX technology. Concerns were also raised that Indonesia was trying to steal the KF-21 technology and then run away.
Military expert reporter Yoon Sang-ho [email protected]
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2024-08-17 05:13:39