The South Korean Defense Acquisition Program Administration (DAPA) confirmed on the 13th that it has re-signed the joint development agreement for the KF-21 "Boeing Hawk" fighter jet with the Indonesian Ministry of Defense. The new agreement allows for a reduction in the cost-sharing ratio that Indonesia originally agreed upon in 2010, which is expected to enable Indonesia to rejoin the development program and enhance bilateral security cooperation.

DAPA's director, Lee Jong-kyun, visited Jakarta, Indonesia, last week during the "Indo Defence 2025" exhibition to sign the bilateral agreement with the Indonesian Ministry of Defense and confirmed that Indonesia agreed to lower its cost-sharing ratio for research and development. Subsequently, relevant authorities will initiate administrative procedures to allocate the corresponding funds.

In 2010, both parties signed a joint development agreement, with Indonesia promising to cover 20% of the total R&D cost, approximately 1.7 trillion won (around 406 billion New Taiwan dollars). However, although South Korea officially launched the R&D project in 2016, Indonesia faced financial difficulties and failed to allocate the budget on the originally scheduled timeline, even requesting in May 2024 to lower its share to 7.5%, around 600 billion won. Although DAPA expressed agreement in August of the same year, it was later reported that Indonesian engineers were suspected of stealing R&D technical data, leading to significant controversy over the cooperation project.

Fortunately, after multiple rounds of negotiations, both parties signed a new version of the agreement with an undisclosed amount during the defense exhibition. According to domestic media in South Korea, the amount is expected to remain around 600 billion won. Furthermore, Indonesia has recently signed a contract with Turkish Aerospace (TUSAS) to acquire 48 "KAAN" stealth fighter jets, raising concerns about whether it can support both R&D projects simultaneously.