Indonesia Faces Risks over Involvement in Fighter Programme
26 Januari 2018
KF-X fighter (photo : chosun)
The scope of Indonesia’s future involvement in its joint programme with South Korea to develop the next-generation fighter aircraft, the Korean Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX), could be readjusted due to a continuing lack of funds.
Indonesian defence officials have stated in recent comments to local media that there is currently a shortfall of about IDR1.85 trillion (USD140 million) that needs to be paid to South Korea in return for its involvement in the programme as per finance agreements signed in 2015.
An industry source with direct knowledge of the programme has also confirmed to Jane’s that Indonesia’s payments in the programme are continuing to come up short caused by a lack of growth in Indonesia’s defence budget.
Jane’s understands that South Korean and Indonesian defence ministry officials are renegotiating Jakarta’s financial involvement in the KFX/IFX development project, and that this could lead to a reduced role in the programme. However, it is understood that the Indonesian government is not considering pulling out of the project.
Indonesia’s repayments on the programme are currently behind by about 40% of its agreed financial commitment, a source has confirmed to Jane’s .
Despite this, the programme is continuing, with around 82 engineers and technicians from Indonesian aerospace company PT Dirgantara (PTDI) deployed to South Korea where they are collaborating with counterparts Korea Aerospace Industries (KAI), the lead developer on the KFX/IFX programme.
Funding for Indonesia’s involvement in the programme had been ring-fenced for 2018, although, like spending since 2015, this has been subject to cuts depending on the strength of Indonesia’s defence budget. Cuts so far have led to the shortfall, with the intention in Jakarta to make up the difference at a later date when more funding becomes available.
Jane’s understands that it is the terms of these repayments that are being negotiated.
(Jane's)
The scope of Indonesia’s future involvement in its joint programme with South Korea to develop the next-generation fighter aircraft, the Korean Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX), could be readjusted due to a continuing lack of funds.
Indonesian defence officials have stated in recent comments to local media that there is currently a shortfall of about IDR1.85 trillion (USD140 million) that needs to be paid to South Korea in return for its involvement in the programme as per finance agreements signed in 2015.
An industry source with direct knowledge of the programme has also confirmed to Jane’s that Indonesia’s payments in the programme are continuing to come up short caused by a lack of growth in Indonesia’s defence budget.
Jane’s understands that South Korean and Indonesian defence ministry officials are renegotiating Jakarta’s financial involvement in the KFX/IFX development project, and that this could lead to a reduced role in the programme. However, it is understood that the Indonesian government is not considering pulling out of the project.
Indonesia’s repayments on the programme are currently behind by about 40% of its agreed financial commitment, a source has confirmed to Jane’s .
Despite this, the programme is continuing, with around 82 engineers and technicians from Indonesian aerospace company PT Dirgantara (PTDI) deployed to South Korea where they are collaborating with counterparts Korea Aerospace Industries (KAI), the lead developer on the KFX/IFX programme.
Funding for Indonesia’s involvement in the programme had been ring-fenced for 2018, although, like spending since 2015, this has been subject to cuts depending on the strength of Indonesia’s defence budget. Cuts so far have led to the shortfall, with the intention in Jakarta to make up the difference at a later date when more funding becomes available.
Jane’s understands that it is the terms of these repayments that are being negotiated.
(Jane's)
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