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Indonesia, South Korea reaffirm defense industry ties with focus on aerospace development

John Thomas May 1, 2025
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Indonesia and South Korea have reaffirmed their long-standing defense partnership, placing a sharper focus on expanding cooperation in the aviation and aerospace industries. Indonesian Deputy Defense Minister Donny Ermawan Taufanto and Seok Jong-gun, head of South Korea’s Defense Acquisition Program Administration, recently reinforced the nations’ commitment to a strategic collaboration that transcends procurement and emphasizes joint development, training and industrial capability-building.

The leaders’ March 2025 meeting at Indonesia’s Defense Ministry reflects the growing bilateral relationship. “I come to Jakarta with the responsibility to strengthen cooperation between South Korea and Indonesia,” Seok said. “We see Indonesia as an important strategic partner.”

At the core of the collaboration is the KF-21/IFX fighter jet development project, which began in 2010 and recently underwent adjustments to financing and technology transfers. “The cooperation between Indonesia and South Korea is not limited to buying and selling but also increasing capacity and capability in the aviation industry,” Taufanto said, praising the performance of South Korean-made assets used by the Indonesian Air Force, such as the T-50 and KT-1 trainer aircraft.

Indonesia is investing about $409 million in the project, down from an original estimate of about $1.1 billion, The Korea Herald newspaper reported. The program now includes full technology transfer — from aircraft design and component manufacturing to flight testing and maintenance — which is expected to boost Indonesia’s long-term aerospace capabilities, according to Indonesian defense analyst Beni Sukadis.

“One of the key developments in the KF-21/IFX project is South Korea’s agreement to accept Indonesia’s proposal to adjust its financial commitment,” Sukadis told FORUM. “This adjustment reflects a cooperative effort to ensure project sustainability.”

Indonesian defense firm PT Dirgantara is expected to focus on prototyping the fighter jet in 2025 and start production in 2026, Pudji Astuti, an analyst at Indonesia’s Defense Ministry, told FORUM.

Jakarta and Seoul also are expanding cooperation in drone development, missile systems and radar technology, and Sukadis cited collaboration among South Korean and Indonesian firms in guided rockets and uncrewed aerial vehicles. In addition, South Korean defense company Hanwha and Indonesia’s PT LEN are partnering to develop air and maritime defense radars and explore satellite applications.

Capacity-building is central to the bilateral efforts. As it strengthens its domestic defense industry, Jakarta also is pursuing defense self-reliance through workforce development and education programs.

Training cooperation has seen Indonesian pilots participate in KF-21/IFX testing, reinforcing operational readiness for potential procurement of up to 40 aircraft, Sukadis said.

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