Korea KF-X/ IF-X (KF-21) program

chibiyabi

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S. Korea approves cutting Indonesia's contribution for joint KF-21 fighter project to 600 bln won​

SEOUL, Aug. 16 (Yonhap) -- South Korea's defense authorities on Friday approved a plan to reduce Indonesia's contribution for a joint fighter jet development project to 600 billion won (US$440 million), about one-third of the original amount, the state arms procurement agency said.

The Defense Project Promotion Committee endorsed the plan amid concerns over Jakarta's commitment to the KF-21 project due to its repeated payment delays.

Indonesia initially agreed to pay 1.6 trillion won, representing 20 percent of the 8.1 trillion-won program launched in 2015 to develop an advanced supersonic fighter. However, Indonesia has so far contributed only around 380 billion won and has recently requested to reduce its total financial contribution to 600 billion won.

The Defense Acquisition Program Administration (DAPA) said the plan covers ways to secure insufficient funds, but did not offer details.

It said the approval considered various factors, including bilateral relations and the possibility of securing the funds, adding that it would properly wrap up cost-sharing talks with Indonesia.

Despite the payment delays, the project is on track to start delivering the advanced fighters, designed to replace South Korea's F-4 and F-5 Cold War-era jets, to the Air Force in 2026.

In June, Korea Aerospace Industries Ltd., the country's sole fighter jet builder, signed a 1.96 trillion-won deal with DAPA to start production of 20 KF-21s.


As for the KF-21 prototype, which Indonesia was originally supposed to receive in exchange for co-development, “If they want the prototype, we will discuss it, but if the total value of the technology transfer (plus the prototype) exceeds their share, they may have to pay more,” he said.
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The cost of the KF-21 was initially set at 8.1 trillion won ($8.1 billion), but the DAPA expects it to be reduced by 500 billion won to 7.6 trillion won due to cost savings during the development process.

Therefore, even if Indonesia's contribution is reduced from 1.6 trillion won to 600 billion won, the shortfall will be 500 billion won instead of 1 trillion won.
it should have done long time ago...
 

Nilgiri

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S. Korea approves cutting Indonesia's contribution for joint KF-21 fighter project to 600 bln won​

SEOUL, Aug. 16 (Yonhap) -- South Korea's defense authorities on Friday approved a plan to reduce Indonesia's contribution for a joint fighter jet development project to 600 billion won (US$440 million), about one-third of the original amount, the state arms procurement agency said.

The Defense Project Promotion Committee endorsed the plan amid concerns over Jakarta's commitment to the KF-21 project due to its repeated payment delays.

Indonesia initially agreed to pay 1.6 trillion won, representing 20 percent of the 8.1 trillion-won program launched in 2015 to develop an advanced supersonic fighter. However, Indonesia has so far contributed only around 380 billion won and has recently requested to reduce its total financial contribution to 600 billion won.

The Defense Acquisition Program Administration (DAPA) said the plan covers ways to secure insufficient funds, but did not offer details.

It said the approval considered various factors, including bilateral relations and the possibility of securing the funds, adding that it would properly wrap up cost-sharing talks with Indonesia.

Despite the payment delays, the project is on track to start delivering the advanced fighters, designed to replace South Korea's F-4 and F-5 Cold War-era jets, to the Air Force in 2026.

In June, Korea Aerospace Industries Ltd., the country's sole fighter jet builder, signed a 1.96 trillion-won deal with DAPA to start production of 20 KF-21s.


As for the KF-21 prototype, which Indonesia was originally supposed to receive in exchange for co-development, “If they want the prototype, we will discuss it, but if the total value of the technology transfer (plus the prototype) exceeds their share, they may have to pay more,” he said.
.
.
The cost of the KF-21 was initially set at 8.1 trillion won ($8.1 billion), but the DAPA expects it to be reduced by 500 billion won to 7.6 trillion won due to cost savings during the development process.

Therefore, even if Indonesia's contribution is reduced from 1.6 trillion won to 600 billion won, the shortfall will be 500 billion won instead of 1 trillion won.

So all in all, reduction in final equity from about 20% to about 8% in the end by Indonesia.
 

Spitfire9

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So all in all, reduction in final equity from about 20% to about 8% in the end by Indonesia.
It is a long time since I heard any talk of an Indonesian KF-21 assembly line. I presume that plan has been shelved or scrapped.
 

Nilgiri

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It is a long time since I heard any talk of an Indonesian KF-21 assembly line. I presume that plan has been shelved or scrapped.

Yah 8% sounds way too small for a production line. Indonesia likely gets first dibs on production blocks and options in production schedule in South Korea (compared to outsiders interested in KF-21 with no equity at all). But production line would need heavy equity....doesn't seem like Indonesia is too interested in that....shrug. They have commited a lot of funding to F-15 and rafale, so they are stretched to what they can do here with KF-21.
 

Spitfire9

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Yah 8% sounds way too small for a production line. Indonesia likely gets first dibs on production blocks and options in production schedule in South Korea (compared to outsiders interested in KF-21 with no equity at all). But production line would need heavy equity....doesn't seem like Indonesia is too interested in that....shrug. They have commited a lot of funding to F-15 and rafale, so they are stretched to what they can do here with KF-21.
Indeed. In any event, ROK suppliers to Indonesia for KF-21 would need export credit guarantees which would cost a fortune: what premium do you charge to insure against non-payment by a customer with a long history of not paying? The only way I see for ROK suppliers to supply Indonesia would be with payment in advance.
 

chibiyabi

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Indeed. In any event, ROK suppliers to Indonesia for KF-21 would need export credit guarantees which would cost a fortune: what premium do you charge to insure against non-payment by a customer with a long history of not paying? The only way I see for ROK suppliers to supply Indonesia would be with payment in advance.
what happen between indo and ROK cannot see in one perspective or simple point of view like yours. in some article about this case. its explained "...for good relations between Indo & ROK". Example, now ROK is one of the biggest investor/FDI who make invesment in indonesia, even japan surpased.
 

Spitfire9

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what happen between indo and ROK cannot see in one perspective or simple point of view like yours. in some article about this case. its explained "...for good relations between Indo & ROK". Example, now ROK is one of the biggest investor/FDI who make invesment in indonesia, even japan surpased.
Seen from the point of view of companies that would be supplying Indonesia with parts to assemble KF-21: we must be paid for goods and services we deliver according to contract.

If Indonesia breaks its contracts with ROK suppliers, ROK government is not going to pay them what Indonesia owes them.

Indonesia needs to learn what a contract is. That is what is required "...for good relations between Indo & ROK".
 

chibiyabi

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Seen from the point of view of companies that would be supplying Indonesia with parts to assemble KF-21: we must be paid for goods and services we deliver according to contract.

If Indonesia breaks its contracts with ROK suppliers, ROK government is not going to pay them what Indonesia owes them.

Indonesia needs to learn what a contract is. That is what is required "...for good relations between Indo & ROK".
like i said before, IFX/KFX case just small water splash in ROK and Indo relationship..we always pay what we buy, like the hawks that are dumped in bangkok, even east indies debt.
 

Spitfire9

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like i said before, IFX/KFX case just small water splash in ROK and Indo relationship..we always pay what we buy, like the hawks that are dumped in bangkok, even east indies debt.
You do not always pay what you owe. If you did there would not have been the many problems generated in the KF-X programme, generated by Indonesia not honouring payment agreements.

Sorry, I'm not going to spend time looking up the times that Indonesia has not honoured its payment commitments to ROK. There have been many, many reports of this in the press.
 

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Major Jung Da-jung, the first female KF-21 test pilot, “contributed to the development of a powerful fighter jet” [NewsPic]

Major Jeong became the first female KF-21 test pilot on Aug. 23 when she earned her KF-21 Developmental Test Flight Qualification. The KF-21 developmental test pilot qualification is earned by completing the test pilot training course and passing the ground academic evaluation, simulator evaluation, startup and ground runway evaluation, and flight evaluation, all of which confirm the pilot's understanding of the KF-21's various systems. Once certified, the pilot can fly solo missions without an instructor pilot.

Major Jeong, a veteran pilot with more than 1,300 flight hours, was the first female pilot to be selected for the developmental test flight course in 2019, completing 11 months of domestic test flight education and training and nine months of practical training at an overseas flight test school before becoming a test pilot.
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Chocopie

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Major Jung Da-jung, the first female KF-21 test pilot, “contributed to the development of a powerful fighter jet” [NewsPic]

Major Jeong became the first female KF-21 test pilot on Aug. 23 when she earned her KF-21 Developmental Test Flight Qualification. The KF-21 developmental test pilot qualification is earned by completing the test pilot training course and passing the ground academic evaluation, simulator evaluation, startup and ground runway evaluation, and flight evaluation, all of which confirm the pilot's understanding of the KF-21's various systems. Once certified, the pilot can fly solo missions without an instructor pilot.

Major Jeong, a veteran pilot with more than 1,300 flight hours, was the first female pilot to be selected for the developmental test flight course in 2019, completing 11 months of domestic test flight education and training and nine months of practical training at an overseas flight test school before becoming a test pilot.
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Cool pics in good resolution!

The production quality and finishing for a prototype bird is outstanding. They‘re already flying with drop tanks and IRIS-T air-to-air. Noticed the yellow test stickers on fuselage, pylon and missile under wing.
 
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