South Korea said on Monday that a project to develop a fighter jet with Indonesia was on track, and it will negotiate a way for the Southeast Asian country to pay its contribution, of which about $200 million is unpaid. (Photo courtesy of Korea Aerospace Industries)

South Korea Says Fighter Jet Deal With Indonesia Is on Track, Despite $200m Unpaid

BY :JOYCE LEE

OCTOBER 22, 2018

Seoul. South Korea said on Monday that a project to develop a fighter jet with Indonesia was on track, and it will negotiate a way for the Southeast Asian country to pay its contribution, of which about $200 million is unpaid.

Indonesia and South Korea agreed in 2014 to develop the KF-X/IF-X fighter jet.

The project is estimated to be worth about $7.9 billion, and Indonesia had agreed to pay 20 percent of the development costs, but Chief Security Minister Wiranto said on Friday that the government was seeking "lighter" financial terms.

South Korea's arms procurement agency Defense Acquisition Program Administration (DAPA) told a press briefing the project was on track.

"During the South Korea-Indonesia summit in September, it was agreed to continue developing the KF-X," the spokesman said. "About the contribution, we plan to negotiate additionally."

The spokesman confirmed that Indonesia's unpaid contribution was about 230 billion won ($203 million), from between the second half of 2017 and the first half of 2018.

Indonesia's request on the financial terms of the deal comes as it is trying to support the rupiah, which is trading near a 20-year low, and to reduce the use of foreign-exchange reserves.

Reuters

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