Indonesian funding issue re-emerges for KF-X

[Nilgiri]

Indonesian funding issue re-emerges for KF-X

Financing has again raised its head as an issue with Jakarta's involvement in the Korea Aerospace Industries (KAI) KF-X/IF-X fighter programme. Indonesia has fallen behind on payments related to the twin-engined fighter again, according to South Korea's Yonhap news agency, citing sources. KF-X...

www.flightglobal.com

Financing has again raised its head as an issue with Jakarta’s involvement in the Korea Aerospace Industries (KAI) KF-X/IF-X fighter programme.

Indonesia has fallen behind on payments related to the twin-engined fighter again, according to South Korea’s Yonhap news agency, citing sources.

Jakarta is apparently W500 billion ($421 million) in arrears, having failed to pay this amount at the end of August.

Under the terms of the original K-FX/I-FX deal, Jakarta is to foot 20% of the programme’s W8.5 trillion price tag, or W1.7 trillion. It has, reportedly, paid only W227 billion.

Indonesian funding is a perennial issue for the KF-X programme. In 2018, Jakarta launched an effort to renegotiate costs related to the programme.

While Jakarta is ostensibly a partner in the project, a full-scale mock-up of the KF-X revealed at 2019’s ADEX defence show in Seoul lacked any IF-X or Indonesian branding.

The programme has made steady progress since 2019, and final assembly of the first KF-X prototype started recently at KAI’s factory in Sacheon.

Plans call for six prototypes, of which one will be sent to Indonesia. As of late 2019, plans called for South Korea to obtain 120 examples, and Indonesia 48.

The outlook for Indonesian fighter acquisitions remains murky. In recent years, Jakarta has said that it would order two squadrons of Lockheed Martin F-16Vs, and also conclude a long hoped for deal to buy 11 Sukhoi Su-35s. The Su-35 deal is, apparently, held up by the threat of sanctions stemming from the USA’s Countering America’s Adversaries Through Sanctions Act legislation.

In July, it emerged that Indonesia had enquired with Austria about obtaining 15 used Eurofighters.

@#comcom @Chestnut

 

[Ryder]

Indonesia is also going to buy some SU35s along with some eurofighters. Could this perhaps made them delay their payments???

Is indos in this forum. I would love to hear from him.

 

[Azull]

Indonesia is also going to buy some SU35s along with some eurofighters. Could this perhaps made them delay their payments???

Is indos in this forum. I would love to hear from him.

The SU35 deal is about to go out of the window due to CAATSA. Meanwhile the typhoon needs confirmation from all 4 participating country. Our govt seems positive that we could get spain and italy to agree on the deal. Meanwhile the UK has mixed history in regards with defence acquisition from indonesia. The hardest hurdle would be from German parliament with strong left wing influence that they have currently.

All i can say is that our govt seems pretty hopeless on the flanker acquisition and thus start to divert their concentration towards the typhoon.

Regarding the KFX, its not a matter of funds, as shown in many local media outlet. We have the money. Mindef Prabowo just submit a proposal to the finance minister for a $20 billion loan for foreign defence procurement. Local defence budget for 2021 is capped at $9 billion. Even higher than alocated funds for 2020. All i can say is theres a lot of things going on behind the scene currently. Many of it is political and theres kickback factor to be considered as well.

 

[Azull]

Korean officials fly to Jakarta to claim delayed KF-X payments

By Kim Byung-wookPublished : Sept 22, 2020 - 16:54
Updated : Sept 22, 2020 - 16:54

The first prototype of the KF-X fighter is being assembled at KAI headqaurters in Sacheon, South Gyeongsang Province, on Sept. 3. (Defense Acquisition Program Administration)

South Korean officials on Tuesday flew to Jakarta to claim development costs Indonesia owes to Korea for the joint development of next-generation KF-X fighters.

According to industry sources, a Korean task force of 10 officials from Korea Aerospace Industries and the Defense Acquisition Program Administration will renegotiate with Indonesian officials from Wednesday to Thursday on how the Southeast Asian country will deliver its portion of development costs for the KF-X project.

The joint KF-X project requires 8.7 trillion won ($7.4 billion) for development. Indonesia is responsible for 20 percent of the costs, which is approximately 1.7 trillion won. However, Indonesia has been delaying its payments recently, with 500.3 billion won overdue as of April.

Indonesia, while withholding the payment, has reportedly still been seeking technology transfers from KAI, the developer of the KF-X fighters.

“Indonesian officials have requested DAPA to keep the renegotiation confidential,” a DAPA official said. “Only the Korean task force in the field will know which technology Indonesia requests for transfer.”

This month, the Indonesian government said it sliced the cost-sharing rate to 18.8 percent in the last renegotiation, though the target was 15 percent.

By Kim Byung-wook ([email protected])

Korean officials fly to Jakarta to claim delayed KF-X payments

South Korean officials on Tuesday flew to Jakarta to claim development costs Indonesia owes to Korea for the joint development of next-generation KF-X fighters. According to industry sources, a Korean task force of 10 officials from Korea Aerospace Industries and the Defense Acquisition...

m.koreaherald.com

This is very embarassing. This news shows that the current administration lacks the will to continue one of the most important project from the past administration.

For me, if we have no intentions on paying our share, then just opt to be out of the project already. It is not a good gesture to left the koreans hanging. Or if its true that we are demanding for more technology transfer from them, then just pay the share first. It should give us more leverage to negotiate our term.

If we continue to be indifferent like this by postponing our payment for the project, i fear that it would only bring negative impact for us in the eye of international community.

 

[triangle]

Like I said before, Indonesia should aim for 150 KF and 100 TF, augmented by 100's of UCAV's in 2040.

 

[Cevresodti]

Like I said before, Indonesia should aim for 150 KF and 100 TF, augmented by 100's of UCAV's in 2040.

What is TF?

The Turkish future fighter jet?

 

[Philip the Arab]

What is TF?

The Turkish future fighter jet?

Yes, I think.

 

[Cevresodti]

Yes, I think.

Has any prototype of TF-X being built yet?

 

[Philip the Arab]

Has any prototype of TF-X being built yet?

Mockup, no prototype iirc.

 

[Gary]

This current administration has only only fetishes, and that is infrastructure, ....

 

[Azull]

A lot of rumors circulating in defence forum in indonesia lately. Espescially in regards with F35 and the plan to acquire atleast 1 LHD.

None of it can be confirmed though. If we do purchase F35, most likely we will opt to pull out from the KFX program. As the cost per unit of F35 is cheaper than KFX at the moment.

 

[Gary]

A lot of rumors circulating in defence forum in indonesia lately. Espescially in regards with F35 and the plan to acquire atleast 1 LHD.

None of it can be confirmed though. If we do purchase F35, most likely we will opt to pull out from the KFX program. As the cost per unit of F35 is cheaper than KFX at the moment.

At this point being part in KFx makes us a laughing stock for the Koreans, even let's say we're able to assemble the Jets, might to remind you that the engines,Radar,cockpit all the way to the ejection seat are all gon be imports. We don't know when the KFX gonna reach IOC, and I don't think we have much time to decide concerning the situation at our North.

Buying F-35's is a smarter decision, it's cheaper, we could achieve commonality with the Aussies, Singapore.

 

[Azull]

At this point being part in KFx makes us a laughing stock for the Koreans, even let's say we're able to assemble the Jets, might to remind you that the engines,Radar,cockpit all the way to the ejection seat are all gon be imports. We don't know when the KFX gonna reach IOC, and I don't think we have much time to decide concerning the situation at our North.

Buying F-35's is a smarter decision, it's cheaper, we could achieve commonality with the Aussies, Singapore.

Couldnt agree more on this bro.

The most logical decision would be to purchase the F35 and ditch the KFX program.

It doesnt mean that i am not supporting our govt effort to have indegenous fighter jet.

Its just seems to be the smartest decision to be made in light of whats been happening at the South China Sea.

Commonality with Sing and Aussie is just an added bonus. We should view the purchase of F35 as a strategic decision.

 

[Combat-Master]

I don't see Indonesia benefitting much from this project, S.Korea controls almost everything. Indonesian engineers don't have a say in most things and are very limited in numbers as compared to S.Korean side.

According to this article, Indonesia wants to reduce it's contribution and pay with cn-235 planes...

Korea, Indonesia set renegotiations for joint fighter jet development project

Korea and Indonesia are working on a new agreement for their joint fighter jet project, which has hit a snag following Indonesia's delay in paying hundreds of millions of dollars.

www.koreatimes.co.kr

 

[triangle]

I am amazed by the large number of foreign parts in the KF-X. I'm sure the TF-X doesn't share a similar outcome.

 

[Anmdt]

engines,Radar,cockpit all the way to the ejection seat are all gon be imports

And in F-35 or any other fighter (Rafale, Typhoon) everything will be imported, the worst even major overhauls and maintainance -upgrades can be done outside, weapon integration would be limited. In KF-X, the integration and construction will take place in Indonesia and a great ability will be gained, even that Indonesia can eventually turn into a regional maintenance hub.

In long term, KF-X sounds to be a better option which Indonesia can integrate domestic solutions by time or even gain local production for some parts of the subsystems like engine, radar, electronics -- at worst, ability to integrate-repair-replace subsystems.

From that point of view, Indonesia should also scrap Sigma class OPV/Frigate projects or ongoing submarine project with Korea and go for direct purchase, since it doesn't quite matter according to your statement. In contrast i can see,at least some officials--i should emphasize the "some"--, are striving for local production with a dedicated plan eventhough major subsystems,modules or blocks are still imported ,sometimes as pre-integrated.

Espescially in regards with F35 and the plan to acquire atleast 1 LHD

Dream of some aged officials, they have costed some to the Indonesia with their rapid decisions, And they are soon to retire, which is a good thing. F-35B + LHD is a high budget solution considering the funding issues emerging for MEF, it is better to spend that money for AAW frigates, to have more of them, to have better of them. Plus, carrying F-35B that vessel will turn into a high value target, and will even cost more with its sensors and self-defense systems and there will be a need for AAW and ASW frigate better than what Indonesia has got or going to get.
Definitely there is a need for large amphibious vessel, makassar class' capabilities are limited and they are under-armed for a wartime, better with a flat deck or larger helicopter capacity -like Dokdo class.

 

[Madokafc]

I am more into continue the project though.

 

[BordoEnes]

Its hard to believe Indonesia doesnt have the funds. They are an emerging economic powerhouse whose GDP is larger then Turkey. If we can finance our own fighter jet then they should definitly be able to co-finance and existing one that is fraction the cost of the overal cost. There is mostly likely problems with either production or technology sharing, and therefore they are dragging their foot on the ground. Corruption or back alley deals might also be a reason, though i would think the requirements of the Indonesian air force is simply shifitng.

 

[Gary]

I am more into continue the project though.

yup but we have our shares we should pay, immediately

 

[Madokafc]

yup but we have our shares we should pay, immediately

We should, as long as Korean bank can give us more soft loan to pay the project in the first place