<p >South Korea and Indonesia have finalised a revised agreement for the latter’s procurement of KF-21 Boramae fifth generation fighter aircraft, in which Indonesia remains the sole foreign partner country despite having failed to meet its financial contributions since 2019. The updated contract reduces Indonesia’s contribution to the program from 1.6 trillion won, or approximately $1.168 billion, to just 600 billion won, or approximately $438 million. The Indonesian Defence Ministry had initially committed to finance 20 percent of the program’s costs. An alternative payment structure was also agreed on, while the Indonesian Defence Ministry reaffirmed its commitment to procuring 48 aircraft. The agreement was reached as the future of the Indonesian fighter fleet has been increasingly uncertain, with unconfirmed reports having emerged that the Defence Ministry could <a href="https://militarywatchmagazine.com/article/indonesia-close-ordering-chinese-j10c-combat-successes" >procure Chinese J-10</a> or Turkish TF-X fighters. The TF-X is a much heavier fighter than the KF-21 with higher operational costs, and was developed by a country with a much more limited technological and military industrial base and with far less experience in fighter aviation, which has limited its appeal to foreign clients. South Korea has a history as a supplier to the Indonesian Air Force, and previously supplied T-50 trainers.&nbsp;Progress on a KF-21 sale may have served to derail plans for the procurement of the J-10, after some sources reported that a deal was imminent.&nbsp;&nbsp;</p><p ><img src="https://militarywatchmagazine.com/m/articles/2025/06/14/article_684cc59746ba92_24154671.png" >The KF-21 program began with a memorandum of understanding signed in 2010, and was formally launched in 2015. The aircraft is poised to gain considerable export successes as the only NATO-compatible fifth generation fighter other than the F-35, with the aircraft seen to have the potential to penetrate European markets as part of a high-low combination with the larger American stealth jet. Indonesia currently has a <a href="https://militarywatchmagazine.com/article/a-new-phase-in-indonesia-s-long-effort-to-purchase-russian-su-35-fighters-ambassador-confirms-contract-still-in-effect" target="_blank">contract on hold</a> to procure 11 Russian Su-35 fighters, and has reportedly shown a strong interest in the Russian Su-57 while continuing to rapidly strengthen defence ties with Moscow. The Defence Ministry was also previously announced to have decided to procure American F-15EX fighters, although their immense costs had drawn the viability of such a deal into question from the outset. The KF-21 made its first flight in July 2022, and is scheduled to enter serial production in 2026, with at least 40 scheduled to be delivered within two years and 120 by 2032.&nbsp;The fighter is considered less capable and has far less advanced stealth capabilities than Chinese, American and even Russian fifth generation combat jets, although its operational costs are also considerably lower, allowing it to appeal to a wider range of clients with lower defence budgets. It is still expected to comfortably outperform the ‘4+ generation’ Rafale fighters which Indonesia is currently procuring, or the TF-X which is unlikely to meet event the most conservative fifth generation standards.&nbsp;</p>
Skip to content
SurvivalThat is all