Speaking at a meeting with the Defense Ministry, Finance Ministry, Foreign Affairs Ministry, and the National Development Planning Agency on Monday, Moeldoko called for giving serious consideration to the follow-up on the cooperation program.
According to Moeldoko, those three issues require immediate solutions in an effort to continue the cooperation between both nations.
"This collaboration has put a stake in the political relations between Indonesia and South Korea. We have to consider it seriously," he noted in an official statement from the Presidential Staff Office.
Apart from the harmonization of bilateral cooperation, Moeldoko also drew attention to the involvement of technology transfer for the fighter jet project.
"This project can help to develop our human resources. Our domestic engineers can master more advanced technology," he remarked.
Earlier, he noted that Indonesia and South Korea had agreed on a KFX/IFX development project worth US$8 billion, or around Rp121.35 trillion. In this project, Indonesia will receive technology transfer for the development of fighter jets.
He stated that the project is expected to produce 120 fighter jets for South Korea and 48 fighter jets for Indonesia. According to the agreement, Indonesia will cover 20 percent of the payment.
However, the project’s cost share allocation was delayed and needed re-negotiation to solve this issue, Moeldoko noted.
According to the timeline, he remarked that the engineering, manufacturing, and development (EMD) program for the fighter jet project will be completed in 2026.
However, this cannot be implemented, as Indonesia still has to pay off the cost share payments. Moeldoko noted that the payment matter had become a decision taken by the Finance Ministry.
"At first, we were enthusiastic about this program. Then, we were a bit skeptical and enthusiastic again. Unfortunately, there are other plans for the state finances," he noted.
Hence, Moeldoko plans to meet the South Korean defense minister on October 5, 2023, to discuss the continuation of cooperation in developing fighter jets.
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Translator: Yashinta Difa P, Resinta S
Editor: Rahmad Nasution
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