It would mark a major breakthrough in Seoul`s efforts to export the T-50 Golden Eagle supersonic trainer jet.
"I heard that Indonesia`s leadership has virtually approved a plan to designate South Korea as preferred negotiator," the government official said on the condition of anonymity. "Only the process of administratively notifying us (of the decision) remains and it seems to be going well."
Seoul will then begin talks with Jakarta on specific terms of a contract, including price, he added. If successful, it will become the first export of the T-50.
The state-run Korea Aerospace Industries (KAI) developed the aircraft in partnership with Lockheed Martin and began mass production in 2005.
Reportedly priced at around 23 billion won (US$20 million) per plane, the T-50 is the first trainer to use electronic fly-by-wire and digital flight controls for precision maneuvering. It can be modified into a light-combat plane.
South Korea and Indonesia agreed to boost defense industry cooperation when the leaders of the two sides held a summit in the Indonesian resort island of Bali last December.
Indonesian President Susilo Bambang Yudhoyono has dispatched a special envoy to Seoul for discussions on ways to follow up on the summit deal to expand bilateral economic ties.
Hatta Rajasa, Indonesia`s coordinating minister for economic affairs, is leading the 50-member delegation of government officials and business leaders.
President Lee Myung-bak is scheduled to meet Rajasa on Wednesday at his office, Cheong Wa Dae, according to his aides.(*)
Editor: Jafar M Sidik
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