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Indonesia to renegotiate involvement in KFX/IFX fighter programme
Jon Grevatt, Bangkok - IHS Jane's Defence Industry
21 October 2018
The Indonesian government has confirmed that it will seek to “renegotiate and restructure” its programme with South Korea to develop the KFX/IFX fighter aircraft. Source: Korea Aerospace Industries
The Indonesian government has said it will renegotiate its programme with South Korea to develop the Korean Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX) aircraft.
The Coordinating Ministry for Political, Legal, and Security of Indonesia said in a statement on its website on 19 October that the move is necessary due to “current national economic conditions”.
The minister of the portfolio, Wiranto – who goes by a single name – said in the statement that the government will look to secure a “lighter” economic commitment to the co-development project, which began in 2015.
“Due to national economic conditions, President [Joko Widodo] has decided to renegotiate [the contract] to make Indonesia’s position lighter for matters related to funding,” said Wiranto.
He added that the government will now form a project team, which he will lead, to renegotiate the contract with representatives from South Korea, and that both governments wanted to finalise a new deal within 12 months.
Wiranto said elements of the deal to be reviewed include Indonesia’s overall financial commitment, the agreed percentage of development costs to be covered by Indonesia, production workshare and expenses, technology transfers to Indonesia, and Indonesia’s access to intellectual property as well as marketing rights once the programme begins production.
In the same ministerial statement, Tom Lembong, chairman of the Indonesian Investment Coordinating Board (BKPM), said that South Korea’s President Moon Jae-in had already agreed to “renegotiate and restructure” the KFX/IFX program during meetings between the two leaders in a summit in Seoul in September.
He said that the renegotiation will aim to lessen the burden on the state budget, reduce the depletion of Indonesian foreign exchange reserves, and “maintain an investment climate” for South Korean investors in the fighter aircraft program. He added, “The two heads of state agreed that this [renegotiation] must be completed in 12 months.”
https://www.janes.com/article/83926...iate-involvement-in-kfx-ifx-fighter-programme
Jon Grevatt, Bangkok - IHS Jane's Defence Industry
21 October 2018
The Indonesian government has confirmed that it will seek to “renegotiate and restructure” its programme with South Korea to develop the KFX/IFX fighter aircraft. Source: Korea Aerospace Industries
The Indonesian government has said it will renegotiate its programme with South Korea to develop the Korean Fighter Xperiment/Indonesia Fighter Xperiment (KFX/IFX) aircraft.
The Coordinating Ministry for Political, Legal, and Security of Indonesia said in a statement on its website on 19 October that the move is necessary due to “current national economic conditions”.
The minister of the portfolio, Wiranto – who goes by a single name – said in the statement that the government will look to secure a “lighter” economic commitment to the co-development project, which began in 2015.
“Due to national economic conditions, President [Joko Widodo] has decided to renegotiate [the contract] to make Indonesia’s position lighter for matters related to funding,” said Wiranto.
He added that the government will now form a project team, which he will lead, to renegotiate the contract with representatives from South Korea, and that both governments wanted to finalise a new deal within 12 months.
Wiranto said elements of the deal to be reviewed include Indonesia’s overall financial commitment, the agreed percentage of development costs to be covered by Indonesia, production workshare and expenses, technology transfers to Indonesia, and Indonesia’s access to intellectual property as well as marketing rights once the programme begins production.
In the same ministerial statement, Tom Lembong, chairman of the Indonesian Investment Coordinating Board (BKPM), said that South Korea’s President Moon Jae-in had already agreed to “renegotiate and restructure” the KFX/IFX program during meetings between the two leaders in a summit in Seoul in September.
He said that the renegotiation will aim to lessen the burden on the state budget, reduce the depletion of Indonesian foreign exchange reserves, and “maintain an investment climate” for South Korean investors in the fighter aircraft program. He added, “The two heads of state agreed that this [renegotiation] must be completed in 12 months.”
https://www.janes.com/article/83926...iate-involvement-in-kfx-ifx-fighter-programme