What's Happening?
Indonesia is looking to deepen its involvement in South Korea's KF-21 Boramae fighter program by potentially acquiring 16 Block 2 variants of the aircraft. This development follows a closed-door meeting at the Indonesian Ministry of Defence on January
7, 2026. The meeting was a follow-up to a proposal made by Indonesian President Prabowo Subianto to South Korean President Lee Jae-myung during the Asia-Pacific Economic Cooperation (APEC) Summit in October 2025. The discussions focused on the possibility of South Korea extending an export credit facility through the Exim Bank of Korea to support Indonesia's financing obligations for the KF-21 fighter jets. Representatives from Korea Aerospace Industries and Indonesia's state-owned aerospace company PT Dirgantara Indonesia were present at the meeting.
Why It's Important?
The potential acquisition of 16 Block 2 KF-21 fighter jets by Indonesia signifies a significant step in reviving a previously stalled contract between the two nations. This move could enhance Indonesia's air defense capabilities and strengthen military ties between South Korea and Indonesia. The involvement of the Exim Bank of Korea in providing an export credit facility highlights the financial collaboration necessary to facilitate such defense deals. For South Korea, this deal represents an opportunity to expand its defense exports and solidify its position as a key player in the global defense industry. For Indonesia, acquiring these advanced fighter jets could bolster its military capabilities and regional influence.
What's Next?
If the deal proceeds, the next steps would likely involve finalizing the terms of the export credit facility and the specific details of the aircraft acquisition. Both countries may engage in further negotiations to ensure the agreement aligns with their strategic and financial interests. The successful execution of this deal could lead to future collaborations in defense technology and joint military exercises, further strengthening the bilateral relationship between South Korea and Indonesia.
