South Korea, Indonesia near fighter jet deal

Following Brazilian President Luiz Inácio Lula da Silva, Indonesian President Prabowo Subianto is expected to pay a state visit to South Korea in April, government sources said. As U.S.-led protectionist policies intensify and U.S.-China trade tensions persist, Seoul is accelerating summit diplomacy with key partners in the Global South, including South America and the Association of Southeast Asian Nations, to diversify its supply chains. The two sides are also reported to have made progress on an additional export contract for South Korea’s domestically developed KF-21 Boramae supersonic fighter jet, a central issue in bilateral relations.

According to the presidential office on Feb. 24, Seoul and Jakarta are coordinating details of Prabowo’s visit. A plan had previously been discussed for him to visit Japan and South Korea after attending China’s Victory Day military parade in September last year, but the trip was canceled amid intensifying anti-government protests in Indonesia. A separate proposal for a December visit also fell through.

Seoul regards expanded economic cooperation with Indonesia, the largest economy and most populous country in ASEAN, as strategically significant. Indonesia serves as a major production and investment base in Southeast Asia for South Korean companies and is the world’s largest supplier of nickel, a critical mineral used in electric vehicle batteries and a growing focus of competition between the United States and China. By restricting exports of raw ore and promoting domestic processing industries, Indonesia has positioned itself as a pivotal player in the global battery supply chain.

An agreement for Indonesia to acquire 48 KF-21 fighter jets in batches of 16 is reportedly close to being finalized. Jakarta initially signed a memorandum of understanding to purchase the 48 aircraft upon completion of the joint development program. However, it later adopted a more cautious stance, concluding separate agreements to buy France’s Dassault Rafale and Turkey’s TAI Kaan fighter jets. Indonesia, a partner in the KF-21 development project, had originally pledged to contribute 1.6 trillion won but later reduced its commitment to 600 billion won, saying it would scale back its payment in exchange for a proportional reduction in technology transfers.

Meanwhile, Presidential Chief of Staff Kang Hoon-sik, who also serves as special presidential envoy for strategic economic cooperation, departed for the United Arab Emirates on Feb. 24. Kang is expected to discuss follow-up measures to the bilateral summit held in November last year, including expanded cooperation in the defense industry, artificial intelligence and nuclear energy.


Kyu-Jin Shin newjin@donga.com