Indonesia is a Southeast Asian regionEconomic growthOne of the faster countries, between 2019 and 2023,Gross Domestic ProductAverage annual growth rateAbout 29%。As Indonesia is in the midst of a defense equipment upgrade, defense spending is expected to grow from $8.8 billion in 2023 to $9.7 billion in 2028. Indonesia has approved a number of defense contracts, including the purchase of 42 aircraftRafale fighter, 24 F-15IDNsFighters, 2 planesA-400M transport aircraftand plans to purchase 24 aircraftS-70M "Black Hawk" **。Despite IndonesianAir ForceThe equipment is being upgraded, but the ground equipment has not been updated. This is mainly due to the fact that Indonesia** has prioritized the upgrading of its air power and has seen the upgrading of ground equipment as a lower priority. However, as the defense budget continues to grow, funding for some cooperative projects has become strained.
Indonesia as a Southeast Asian regionEconomic growthOne of the faster countries is also having a ballooning defense budget. From 2019 to 2023, Indonesia'sGross Domestic ProductAverage annual growth rateAbout 29%, showing IndonesiaEconomic growthstability and vitality. withNational economyIndonesia's demand for national defense is also gradually increasing. According toInternationalIndonesia's defense spending is likely to grow from US$8.8 billion in 2023 to US$9.7 billion in 2028, according to consulting firm GlobalData. This growth trend indicates that Indonesia's investment in defense equipment will continue to increase.
In terms of defense equipment upgrades, Indonesia** has approved a number of contracts. This includes the purchase of 42 aircraftRafale fighterand 24 aircraftF-15ID fighterto elevate itAir Forcecombat capabilities. In addition, Indonesia plans to purchase 2 aircraftA-400M transport aircraftto improve its air freight capacity. Indonesia also plans to purchase 24 aircraft in the coming yearsS-70M "Black Hawk" **to elevate itArmymaneuverability.
Despite IndonesianAir ForceThe equipment is being upgraded and replaced, but the ground equipment of the Indonesian troops has not been updated. It is equipped with the Stormer30Infantry fighting vehiclesPurchased in the 90s of the 20th century, the procurement of artillery equipment dates back to the 70s of the 20th century, and its main ground equipment AMX-13 tank was purchased in the 60s of the 20th century. Although the upgrading of ground equipment is considered a lower priority, it is not a matter of higher priority due to defense spendingGrowth rateToo quickly, causing some collaborative projects to become strained.
In 2009, Indonesia signed a contract with South Koreakf-21The project was officially launched with an agreement on joint research and development of fighter aircraft. In accordance withkf-21The timeline of the project, by 2026, the total cost of development is expected to be about 88 trillion won. According to the agreement, South Korea will invest 60% in South KoreaaviationAerospace Industries Corporation (KAI) and Indonesia** each own 20%. According to the original plan, 120 aircraft will be completed by 2032kf-21including the delivery of one aircraft to IndonesiaTesting machines48 aircraft were produced in Indonesia. However, Indonesia** has been unpaid for the project for a long time, and as of the end of 2022, only 278.3 billion won has been disbursed, and the remaining 991.1 billion won remains unpaid.
Indonesia**'s delayed payment has raised suspicions in South Korea** and the outside world. This is despite the fact that Indonesia's state-owned aircraft manufacturer PTDIRGANTARAINDONESIA (PTDI) has said it will not withdrawkf-21FightersHowever, Indonesia's ** Provincial Chief of Staff Murdoko said that the reasons for the delay in the payment of R&D funds involve issues such as intellectual property rights, agreements and market rights. In addition, he said that the allocation of costs for the project needed to be renegotiated in order to reach a fundamental solution.
This is despite the fact that Indonesia** has not been paid as scheduledkf-21The amount of the project, but the current R&D progress is concernedkf-21No financial difficulties are expected. South KoreaaviationThe Aerospace Industries Corporation (KAI) said it already had a backup plan and had attracted interest from Poland, the United Arab Emirates and other countries.
However, South Korea** has issued an ultimatum asking Indonesia** to come up with a clear, concrete payment plan within two weeks. If Indonesia continues to default, South Korea may consider looking for a new oneInternationalPartners. In addition, the South Korean Embassy in Indonesia also asked Indonesia to fulfill its obligations under the agreement.
In summary, in the current political situation and defense budget situation in Indonesia, it was paid as scheduledkf-21The likelihood of project cooperation costs is already low. If the problem persists, South Korea will have to consider finding a new partner.