The Defense Acquisition Program Administration (DAPA) of South Korea confirmed on the 13th that it has re-signed a joint development agreement with the Indonesian Ministry of Defense for the KF-21 "Falcon" fighter jet, agreeing to reduce Indonesia's share of development costs. This move is expected to enable Indonesia to rejoin the project and deepen bilateral security cooperation.

DAPA Director Lee Jong-kyun visited Jakarta, Indonesia, last week and signed the bilateral agreement during the Indo Defence 2025 exhibition. The Indonesian Ministry of Defense has agreed to lower its share of research and development costs, and the authorities will initiate administrative procedures to pay the corresponding fees.

The two sides first signed a joint development agreement in 2010, where Indonesia promised to bear 20% of the total development cost, amounting to approximately 1.7 trillion won (about 406 million New Taiwan dollars). Although South Korea officially launched the development program in 2016, Indonesia faced financial difficulties and was unable to allocate the budget as scheduled. In May 2024, Indonesia had requested to reduce its share to 7.5%. DAPA initially agreed to this in August, but allegations arose regarding Indonesian engineers allegedly stealing development technology data, leading to significant controversy in the cooperative project. Fortunately, after multiple negotiations, both sides signed a new agreement during this defense exhibition, with estimates indicating costs would remain around 600 billion won.

Additionally, Indonesia recently signed a contract with Turkish Aerospace Industries (TUSAS) for the procurement of 48 "KAAN" stealth fighter jets, raising questions about whether it can support two development projects simultaneously, which will become a focal point of interest moving forward.