South Korea’s KF-21 Boramae fighter program has reached a turning point. Indonesia, the aircraft’s only co-development partner, has confirmed it is walking away from local production in favor of buying the jet directly from Seoul, closing out a decade-long industrial partnership even as Korea works to turn the KF-21 into its first fighter jet export success.
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Indonesia steps back from co-production
The Indonesian Defense Ministry confirmed in late June that it would no longer co-produce the KF-21 with South Korea, opting instead for direct procurement. Ministry spokesman Rico Ricardo Sirait told the Jakarta Globe that the government was adjusting the scheme and would move to “adopt a direct procurement mechanism,” adding that Jakarta had not yet settled on how many aircraft it would ultimately buy under the new arrangement. He said the number would depend on the Indonesian Air Force’s operational needs and the country’s spending capacity.
Separately, Air Marshal Yusuf Jauhari, chief of the Defense Ministry’s Defense Logistics Agency, told reporters that Indonesia would not proceed with joint production and would instead buy the jets outright, according to the Jakarta Post, which cited Kompas.com. The plan drops an earlier proposal to build a final assembly line in Bandung, where state aircraft maker PT Dirgantara Indonesia had been expected to handle local production.
Neither official gave a detailed public explanation for the reversal, though Sirait said the decision followed a comprehensive evaluation weighing the program’s effectiveness, technology transfer terms, economic value and Indonesia’s defense needs, the Jakarta Globe reported. PTDI and the Defense Ministry have said the investment Indonesia has already made in personnel and facilities under the program will not go to waste, and will instead be redirected to support the country’s broader defense industry, according to the Jakarta Post.
The shift caps years of strain in the partnership. Indonesia originally signed on in 2016 to fund about 20 percent of the KF-21’s development costs, a contribution worth roughly 1.6 trillion won, in exchange for up to 48 jets and a role in local production, the Korea Herald reported. Jakarta subsequently fell behind on payments, and Seoul agreed to lower Indonesia’s contribution to 600 billion won while scaling back the technology transfer involved. A data theft case involving an Indonesian engineer working within the program added further friction to the relationship, the Jakarta Globe noted.
That financial chapter has now closed. South Korea’s Defense Acquisition Program Administration confirmed that Indonesia completed its 600 billion won payment on Jun. 25, following through on a pledge earlier this year to settle the remaining balance by the end of June, the Korea Herald reported. With the payment finalized, Seoul is now expected to review transferring a KF-21 prototype to Jakarta as part of the technology-transfer package tied to the deal. A DAPA official said Seoul would ensure that “technology transfers of appropriate value corresponding to the adjusted contribution” are made, while declining to comment on Indonesia’s future procurement plans or budget.
Indonesia’s shopping list has also narrowed. Where the original agreement envisioned up to 48 Block 1 jets built locally, the country is now said to be considering a smaller order of 16 Block 2 aircraft, a scope the Korea JoongAng Daily described as more affordable given Indonesia’s revised financial contribution and available export financing. The outlet reported that negotiations over the 16-jet order were discussed intensively during Indonesian President Prabowo Subianto’s visit to Korea earlier this year, and that a signed contract would give the KF-21 its first confirmed foreign customer.
Indonesia’s commitment to the KF-21 is not exclusive, however. The country signed a roughly $10 billion deal with Turkey in 2025 for 48 of Turkey’s KAAN fifth-generation fighters, a move the Korea JoongAng Daily framed as evidence Jakarta is hedging its bets across multiple suppliers rather than relying on a single partner.
Malaysia and the Philippines watch from the sidelines
Indonesia’s restructured deal comes as Korea Aerospace Industries pushes the KF-21 toward its long-sought first export sale, with interest extending beyond Jakarta. A Hyundai Motor Securities report cited by the Korea JoongAng Daily identified four countries currently reviewing the jet: Indonesia, Malaysia, the United Arab Emirates and the Philippines, with Indonesia by far the furthest along in talks.
Malaysia is reportedly weighing the purchase of up to 30 KF-21 Boramae jets according to local reports, with the aircraft competing against Russian alternatives for the sale. No formal agreement has been reached, and Malaysia’s review remains at an earlier stage than Indonesia’s.
The Philippines, meanwhile, is evaluating the KF-21 as a multirole candidate as it modernizes its air force. The country already operates Korea’s FA-50 light attack aircraft, which the Korea JoongAng Daily noted could give it an advantage in operational and maintenance continuity should it move forward with the KF-21.
The UAE rounds out the list of prospective buyers, though its interest follows a different model. Abu Dhabi has signaled interest in a longer-term cooperation arrangement involving joint development and local production rather than a straightforward purchase, and the two countries signed a letter of intent on fighter cooperation last year, with discussions continuing since, according to the Korea JoongAng Daily. None of the four countries has signed a binding purchase contract for the KF-21 to date.
A watershed moment, with caveats
Defense industry analysts caution that translating interest into signed contracts takes time. Jang Won-joon, an associate professor specializing in the defense industry at Jeonbuk National University, told the Korea JoongAng Daily that fighter jet exports need to be approached with a long-term outlook, noting that France’s Rafale took more than a decade to land its first export sale after performance, reliability, financing and diplomatic factors all came into alignment.
Still, Jang argued the timing could prove significant. With the KF-21 set for its first operational deployment this year, he said succeeding in an initial export at this moment could mark a turning point for Korea’s broader defense export ambitions, positioning the country as an advanced aviation exporter after years of growth built primarily around ground weapons, ships and trainer aircraft. Jang added that completing the Indonesia export was the most immediate priority, since establishing a reference sale would help unlock the other prospective deals.
The KF-21 program was launched in 2015 to replace South Korea’s aging fleet of F-4 and F-5 aircraft and to establish an indigenous fighter platform. Its first mass-produced unit rolled out in March, in a ceremony attended by President Lee Jae Myung, and the development phase was formally completed this month. The restructuring of Indonesia’s role has not derailed the broader bilateral relationship: a 29-point joint statement issued in April, following talks between Lee and Prabowo, reaffirmed both countries’ commitment to KF-21 cooperation and signaled plans to expand collaboration into trainer aircraft and anti-tank guided missile systems, the Jakarta Globe reported.
For now, the KF-21’s export record remains unwritten. Indonesia’s 16-jet order has yet to be finalized, the prototype transfer to Jakarta is still under review, and Malaysia and the Philippines have yet to move beyond preliminary discussions. But with Indonesia’s payment dispute resolved and four countries actively evaluating the aircraft, Korea’s fighter program appears closer than at any point in its history to landing the sale that would validate a decade of development.
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