South Korea and Indonesia have reached an agreement to transfer one of the prototypes of the KF-21 Boramae fighter to Jakarta, following the renegotiation of Indonesia’s participation in the joint development program. The move marks a new chapter in a partnership that had been under strain after years of delayed payments and tensions over technology transfer.
The agreement includes a compensation package valued at approximately 600 billion won (around $400 million), equivalent to Indonesia’s final contribution following the renegotiation of the program.
The package includes the transfer of the fifth KF-21 Boramae prototype — a single-seat aircraft valued at roughly $230 million — along with about $115 million allocated for technology transfer and local research personnel costs, and nearly $50 million for the provision of development data, according to information from the Defense Acquisition Program Administration (DAPA).
A key prototype in the program
The fifth KF-21 prototype, developed by Korea Aerospace Industries (KAI), conducted its maiden flight in May 2023 and has since been used to validate critical systems, including the AESA radar, core avionics, and aerial refueling capabilities.
The transfer of this aircraft would not only allow Indonesia to accelerate the development of operational and engineering capabilities, but also strengthen its industrial participation in the program — one of the original objectives of the bilateral agreement.
Indonesia initially committed to funding around 20 percent of the development of the then-KF-X program, equivalent to approximately $1.1 billion. However, domestic economic challenges led Jakarta to delay payments and request a significant reduction in its contribution, creating uncertainty about its continued participation.
As anticipated in previous negotiations, South Korea agreed to reduce Indonesia’s contribution to around $400 million, which also resulted in adjustments to the scope of technology transfers and industrial benefits.
Payments entering the final phase
According to DAPA, Indonesia has already paid approximately $357 million and plans to complete the remaining roughly $43 million by June. Once full payment is confirmed, South Korea will determine the timeline for transferring the prototype and associated development data.
In parallel, both parties continue negotiations for the potential export of 16 additional KF-21 fighters to Indonesia, which would position Jakarta as the first export customer for the Boramae.
Indonesian test pilot flew KF-21 Boramae prototype for the first time
A program seeking international consolidation
The agreement comes at a critical moment for the KF-21 program, which recently entered its serial production phase and has begun defining new variants and capabilities, including electronic warfare versions, strategic strike roles, and operations with “loyal wingman” drones.
South Korea reveals new KF-21 variants and capabilities during first production aircraft rollout
The transfer of the prototype to Indonesia represents not only a political and industrial gesture, but also a signal that Seoul intends to maintain international cooperation as part of the KF-21’s global positioning in the export market.
After years of uncertainty, the agreement suggests that South Korea and Indonesia have successfully realigned the joint program, strengthening the long-term viability of the Boramae and reinforcing its prospects as one of the most relevant emerging fighter programs on the international market.