Government reminded to be realistic about the KF-21 project

KF-21 Boramae fighter aircraft between Indonesia and South Korea (Ministry of Defense)

JAKARTA - Indonesia Audit Watch (IAW) emphasized that the government's policy focus on the KF-21 fighter aircraft project should be directed at concrete results, not on the symbol of development partnership. This was conveyed by the Founding Secretary of Indonesia Audit Watch Iskandar Sitorus following Indonesia's change of position in the project.

IAW assessed that after revising the agreement with Korea Aerospace Industries (KAI), Indonesia was no longer at the co-developer level, but shifted to a strategic buyer with a participation share of around 7.5 percent. Therefore, the government's policy is considered to be realistic and measurable.

Iskandar emphasized that the first urgent step was the finalization of the contract to purchase 16 units of KF-21 Block II through the South Korean export credit scheme. According to him, the government needs to ensure that negotiations are completed before mid-2026 so that Indonesia does not lose the production queue. Contract certainty and delivery schedule are said to be the key to maintaining Indonesia's credibility in the eyes of the global defense industry while strengthening the combat capabilities of the Indonesian Air Force.

IAW also highlighted the importance of locking in industry benefits or industrial offset. With the decreasing ownership share, Indonesia is asked to ensure clear and measurable compensation, especially related to the involvement of PT Dirgantara Indonesia in final assembly, maintenance and repair (MRO), as well as the production of certain components. Without binding clauses, Indonesia risks becoming only a buyer with minimal domestic added value.

In addition, Iskandar assessed the experience of the KF-21 showed the weakness of the governance of strategic projects, especially cross-ministerial coordination and long-term fiscal certainty. He encouraged the establishment of a single authority for strategic defense projects as well as the implementation of a multi-year budgeting scheme that is protected by regulations so that international commitments are not dependent on annual political dynamics.

"Thus, international commitments are no longer dependent on annual political dynamics," said Iskandar, Sunday, February 22.

IAW also emphasized that the KF-21 should be integrated into the national air power roadmap for the next 20 to 30 years, not treated as a stand-alone project. The purchase decision must be in line with the needs of interoperability, infrastructure readiness, and regional defense strategies.

On the other hand, IAW reminded the importance of restoring and maintaining Indonesia's diplomatic credibility. The delay in payment in the past was considered to have affected the perception of international partners. The government is asked to show consistency in payment and policy certainty so that Indonesia's reputation as a strategic partner can recover.

According to IAW, the focus of the policy on the KF-21 must now ensure three main things, namely a real increase in air power, assurance of industrial benefits, and improvement of project governance. If these three aspects are carried out in a disciplined manner, the KF-21 still has the opportunity to become the foundation of the modernization of the Indonesian Air Force. If not, this project risks becoming a costly lesson about the importance of consistency of state commitments.