REPUBLIKA.CO.ID, JAKARTA -- Indonesia and South Korea signed a Cost Share Agreement (CSA) on the second phase development of KF-X/IF-X war planes on Thursday.
The agreement was signed by the Indonesian Ministry of Defense and the South Korean Korea Aerospace Industries (KAI).
"With the signing of the CSA, I hope that both sides have shown their seriousness and commitment in accordance with this agreement," Indonesian Defense Minister Ryamizard Ryacudu said at the Defense Ministry Building.
The contract was signed by Indonesian Director General for Defense Potential, Timbul Siahaan and President and Chief Executive Officer (CEO) of KAI, Ha Sung Yong.
In the meantime, a Work Assignment Agreement (WAA) was also signed between President Director Indonesian Aircraft Maker PT DI. Budi Santoso and KAI CEO, Ha Sung Yong. The signing of the WAA was witnessed by Minister Ryamizard and Minister of Defense Acquisition Program Administration (DAPA) of the Republic of South Korea, Chang Myoungjin.
The CSA contains an agreement and provisions on the funding of the war plane projects, based agreement signed in October 2014.
The Indonesian government is investing Rp18 trillion through a cost sharing agreement (CSA) with South Korea for the development of KF-X/IF-X fighter aircraft.
"We are spending a total of Rp18 trillion (on the project)," Defense Minister Ryamizard Ryacudu stated on Thursday.
The Rp18 trillion fund account for 20 percent of the total value of the project, where South Korea will finance the remaining 80 percent of the total cost.
The Rp18 trillion investment funds will be used to build three prototypes of the fighter aircraft, noted Ryamizard.
Two prototypes will be built in South Korea and the other in Indonesia.
Besides the three prototypes, two squadrons of the same fighter aircraft will also be built for Indonesia.
The production of two squadrons of KF-X/IF-Xs designed for Indonesia will be financed using different funds. Production is expected to be completed in 2025.
The construction of the prototypes will involve Indonesian scientists and technicians.
"Two will be built there, and the development team for the first prototype will constitute 20 percent Indonesian technicians and scientists. The development team for the second prototype will comprise 50 percent Indonesians, while the third one will be built by a team having 80 percent Indonesians," the Defense Minister emphasized.
The latest generation KF-X/IF-X fighter aircraft is to be jointly produced by South Korea and Indonesia.
"It is a 4.5 generation aircraft, more advanced than an F-16," noted Ryamizard.
He remarked that all components were developed in South Korea without involving other companies from the United States or France.
"It will be developed and completed in South Korea," he added.
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