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The Defense Acquisition Program Administration (DAPA) of South Korea confirmed on the 13th that it has re-signed the joint development agreement for the KF-21 "Falcon" fighter jet with the Indonesian Ministry of Defense. The latest agreement allows Indonesia to reduce its cost-sharing ratio established in the original 2010 agreement, which is expected to facilitate Indonesia's return to the development project and deepen bilateral security cooperation.

DAPA Director Shin Jong-kyun visited Jakarta, the capital of Indonesia, last week during the Indo Defence 2025 and signed the bilateral agreement with the Indonesian Ministry of Defense. Reports indicate that the Indonesian defense ministry has agreed to lower its research and development cost-sharing ratio, and the authorities will initiate administrative procedures to pay the corresponding fees.

The original agreement signed in 2010 stipulated that Indonesia would bear 20% of the total research and development expenses, amounting to approximately 1.7 trillion won (around 406 billion New Taiwan dollars). Although South Korea officially launched the development project in 2016, Indonesia has been unable to allocate the budget as scheduled due to financial difficulties, and even requested in May 2024 to reduce its share to 7.5%, or around 600 billion won.

Despite DAPA agreeing to the request in August of the same year, the project faced serious controversies after allegations surfaced that Indonesian engineers had stolen research and development technical data. Fortunately, after multiple negotiations, the two parties signed a new agreement during the defense exhibition, although the amount has not been publicly disclosed. However, South Korean media estimates suggest that the figure remains around 600 billion won.

Moreover, Indonesia recently signed a contract with Turkish Aerospace Industries (TUSAS) to procure 48 "KAAN" stealth fighters. Whether Indonesia can manage to support both development projects financially will become a key focus in the future.