Skirting the edge of strained diplomatic ties, Indonesia had been accused by South Korea of alleged pilfering of critical technologies by Indonesian engineers involved in the KF-21 Boramae fighter jet project. The South Korean government-operated procurement agency, the Defense Acquisition Program Administration, or DAPA for short, announced on January 2 that investigations have started into the activities of Indonesian engineers sent to Korea Aerospace Industries, KAI.
The suspicion is that these engineers transferred data on the KF-21 development onto a USB device. According to an official from DAPA, “A joint investigation of related agencies, including the National Intelligence Service, is underway to look into the circumstances of the Indonesians’ alleged technology theft.” It will find out whether the stored data includes strategic technologies related to the KF-21 development program.
The report said that two engineers allegedly were involved in this activity. Access of these engineers to the classified parts in the KAI building gave investigators suspicions about an internal accomplice. The 50-100 Indonesian engineers also face a restriction on travel, which forbids them from leaving South Korea.
Indonesian officials have refused to answer the allegations so far. The Eurasian Times has approached the Embassy of the Republic of Indonesia in Seoul for its response, but so far there are no updates.
If the allegations are proven true, it may have very far-reaching implications for the defense cooperation between South Korea and Indonesia by casting a dark shadow over their ambitious KF-21 project. The KF-21 is one of the key joint projects between both nations and has been hailed as a major milestone for defense cooperation.
However, Indonesia has not been able to pay its financial dues for the project and has raised several questions about its seriousness. Indonesia has paid 278.3 billion won in payment but is still short by about 1 trillion won in arrears. This payment issue was the reason Indonesia recalled its 114-member engineering team back in March 2020. After much deliberation, Jakarta assured that the recommitting of the contract was in order, and Indonesian engineers went back to South Korea in August 2021.
These ambiguities notwithstanding, Indonesian officials have shown continued public confidence in the country’s participation in the KF-21 program. In September 2023, President Joko Widodo repeated Jakarta’s involvement in the program, while earlier that year Deputy Defense Minister Wamenhan Herinda underlined Indonesia’s “big commitment” to the KF-21.
The South Korean fighter jet program, itself christened KF-21 Boramae, is developing three different variants: the KF-21 EA, EX, and SA. Such diversification will add substantial value toward improved South Korean airpower and more export potential in the global arms market.
While there will be onboard changes in the EA variant to keep a dedicated EWO station, the KF-21 EA will be capable of doing the important escort jamming. In the EX variant, there is an internal weapon bay which reduces the radar signature and makes it close to a fifth-generation fighter jet. The variant SA refers to the export variant; the export countries can have weapons and internal equipment variables based on the requirements of the country.
Indonesia also continues to express its commitment to the KF-21 Boramae despite missing payment deadlines. According to PT Dirgantara Indonesia, Indonesia has paid 21% of the cost share until June 2023. In contrast, DAPA in South Korea claimed Indonesia had yet to provide plans for new payments and requested consultations over cost sharing.
This project, by having Indonesia move ahead with the KF-21, is one in a series of attempts to modernize the Indonesian Air Force, which currently operates a very mixed fleet of 49 fighter aircraft. For many years, IDAF has aimed at increasing capability in covering its airspace and meeting the evolving security need brought in by China.
This forms part of South Korea’s broader strategy of becoming a major exporter of high-tech weaponry. Potential buyers like Poland and Malaysia have shown interest in the KF-21, with Poland saying that it would make a decision in 2026 about the program. Malaysia can replace its Su-30 MKMs and F/A-18s either with an improved FA-50 or the KF-21.
The KF-21/IFX project could be a manifestation of concrete steps toward the partnership between Indonesia and South Korea, likely with an influence on improving Indonesia’s capability for independent development of its defense industry. The project also corresponds with the New Southern Policy of South Korea, which emphasizes close political and economic links with ASEAN countries while positioning itself as an arms supplier to the region.
While the investigation regarding the alleged technology theft is ongoing, the future of the KF-21 project and the whole course of defense collaboration between Indonesia and South Korea continue to hang precariously.