South Korea to deliver KF-21 prototype to Indonesia after final payment

Why South Korea is transferring an non-combat-worthy prototype KF-21 Boramae fighter jet to Indonesia.

Korean President Lee Jae Myung at the rollout of the first KF-21 Boramae

With the KAI KF-21 Boramae fighter jet now going into serial production, Seoul is ready to transfer a prototype to Jakarta. The move comes as South Korea eyes Indonesia as the fighter jet’s first export customer.

South Korea set to transfer prototype KF-21 to Indonesia

Information from the South Korean Defense Acquisition Program Administration shows it is set to transfer a prototype KF-21 fighter jet to Indonesia as part of an earlier deal.

The prototype aircraft (No. 5) first flew in May 2023 and is a single-seat aircraft. It has been used for testing avionics (including AESA radar) and aerial refuelling.

KF-21 Boramae rollout in south Korea
Photo: Yonhap

The transfer is related to Indonesia’s participation in funding the development of the fighter jet. Indonesia contributed around 600 billion won to the development of the KF-21, and the prototype aircraft is valued at 350 billion Won ($230 million).

Regarding the balance, Chosun reported, “participation payments (labour costs for Indonesian research personnel) and technology transfer worth 174.2 billion won ($115 million), and development data worth 75.8 billion won ($50 million).”

Indonesia’s scaled-down contribution to the KF-21

The KF-21 development was primarily funded by South Korea, although it was meant to be a joint programme with Indonesia, with the latter originally intended to contribute around 20% of its development costs.

The KF-21 Boramae rolling out at Korea Aerospace Industries
Photo: Yonhap

This would have equated to around 1.6 trillion Won ($1 billion), and in exchange, Indonesia was to receive a corresponding amount of value transfer.

But Indonesia ran into financial difficulties and failed to make some of the payments, leading to its commitment being revised down to 600 billion Won ($400 million). Of these, Indonesia has paid 536 billion Won ($357 million) and has yet to pay the remaining 64 billion ($43 million), which is due in June 2026.

The value of the items to be transferred to Indonesia has been accordingly scaled down.

Korea had considered not transferring the aircraft at all, but decided to go ahead anyway, as Indonesia is considered a potential export customer for the new aircraft.

Indonesia has strongly requested the prototype, while South Korea also asserts that it was more beneficial to transfer a non-combat-coded prototype than other fighter technologies.

South Korea KF-21 Boramae
Photo: KAI

The South Korean news outlet, Chosun, reported that the transfer of the jet is related to a “value transfer” plan for the KF-21 joint development project. The prototype will be transferred after the completion of the final payment.

Building Indonesia’s eclectic new air force

Indonesia is in the midst of one of the world’s most bewilderingly diverse fighter jet modernisations. Typically, mid-tier air forces will limit themselves to two fighter jet types to manage costs and logistics.

Boeing F-15EX and Indonesia memorandum of understanding
Photo: Boeing

Indonesia already operates a fleet of F-16 Fighting Falcons and Su-27/30s frontline fighters. It also has BAE Hawks, KA-50 Golden Eagles, as well as Embraer Super Tucano turboprop light attack aircraft.

Indonesia considered purchasing Russian Su-35s but was blocked by the US CAASTA Act. It also requested to purchase American F-35s, only to be denied, with the US offering the F-15EX instead.

Jarkarta placed an order for up to 36 Boeing F-15EX fighter jets, but Boeing confirmed in February 2026 that this deal had been cancelled.

It is currently taking delivery of the first Dassault Rafales and is rumoured to be considering purchasing more. Indonesia is also reported to be negotiating to purchase Turkish Kaans, Chinese J-10Cs, and Sino-Pakistani JF-21 Thunders. It is also purchasing Italian Leonardo M-346 light fighters/advanced trainers.

Dassault Rafale fighter jet by Airwolfhound
Photo: Dassault Aviation

To top it off, Indonesia is in negotiations to purchase 16 more KF-21s; this would make Indonesia the first export customer for the Boramae.

Featured Image: Yonhap

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