October 22, 2018 / 3:55 AM / 2 months ago

S.Korea says fighter jet deal with Indonesia is on track, despite $200 mln unpaid

SEOUL, Oct 22 (Reuters) - South Korea said on Monday a project to develop a fighter jet with Indonesia was on track, and it will negotiate a way for Indonesia to pay its contribution, of which about $200 million is unpaid.

Indonesia and South Korea agreed in 2014 to develop the “KF-X” fighter jet.

The project is estimated to be worth about $7.9 billion, and Indonesia had agreed to pay 20 percent of the development costs, but a senior Indonesia official said on Friday it was seeking “lighter” financial terms.

South Korea’s arms procurement agency Defense Acquisition Program Administration (DAPA) told a press briefing the project was on track.

“During the South Korea-Indonesia summit in September, it was agreed to continue developing the KF-X,” the spokesman said.

“About the contribution, we plan to negotiate additionally.”

The spokesman confirmed that Indonesia’s unpaid contribution was about 230 billion won ($203.14 million), from between the second half of 2017 and the first half of 2018.

Indonesia’s request on the financial terms of the deal comes as it is trying to support the rupiah, which is trading near a 20-year-low, and to reduce the use of foreign exchange reserves. (Reporting by Joyce Lee Editing by Robert Birsel)

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