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Renegotiate Fighter Aircraft with South Korea, Moeldoko: Be Firm

Jakarta – The Chief of Staff to the President, General (ret.) Dr. Moeldoko held a coordination meeting with Ministry of Defense, Ministry of Finance and Indonesian Ministry of National Development Planning to discuss further steps for the development of the joint project of KF-X/IF-X (Korea Fighter Experiment/Indonesia Fighter Experiment) with South Korea, held in Bina Graha, Jakarta, Monday (2/10).

Moeldoko assessed that there are three big issues related to the joint project. Namely, regarding the intellectual property rights, agreement system and distribution rights. All of these three issues, said Moeldoko, need immediate solution for the continuity of the joint project.

“The political relations between the two countries are at stake, we should think about it very carefully,” said Moeldoko.

Apart from the harmonization of the bilateral cooperation, Moeldoko also conveyed the involvement of technology transfer from this fighter aircraft project. “This project is also related to the development of our human resources, so that our engineers could move forward to advanced technology,” he said.

As previously stated, the cost share allocation was delayed, so renegotiation was needed. If it is in accordance with the agreement, the engineering, manufacturing and development program (EMD) in the fighter aircraft project should be done in 2026. However, this condition can not be implemented because Indonesia still needs to repay the cost share.

From the national finance side, Moeldoko stated that this matter has already become the Ministry of Finance decision. “At first we were extremely enthusiastic, now we are doing back and forth and now we are again enthusiastic, but finance has other plans,” said Moeldoko.

As for information, Indonesia is collaborating with South Korea in developing the KF-X/IF-X Fighter Aircraft. The two countries agreed on a project of US$8 billion or Rp. 121,35 trillion. In this project, Indonesia gets the transfer of technology from the project. The project is estimated to produce 120 units of fighter aircraft for South Korea and 48 units for Indonesia. According to the agreement, Indonesia will bear 20 percent of the payment.

On this occasion, Moeldoko also conveyed that he will meet with the South Korean Minister of Defense on 5th October (TNI’s Anniversary). “I will discuss these matters further,” Moeldoko concluded. 

Captions: The Chief of Staff to the President, General TNI (ret.) Dr. Moeldoko during  coordination meeting with Ministry of Defense, Ministry of Finance and Indonesian Ministry of National Development Planning to discuss further steps for the development of the joint project of KF-X/IF-X (Korea Fighter Experiment/Indonesia Fighter Experiment) with South Korea in Jakarta, Monday (2/10).