Korea Aerospace Industries Ltd. signed a deal with Indonesia on Sunday, clinching the Southeast Asian country's partnership in a lavish local fighter jet development program.
Under the preliminary contract, Indonesia will shoulder 20 percent, or 1.7 trillion won ($1.5 billion), of the program's 8.7 trillion-won cost to develop the advanced multi-role combat jet, according to the airplane manufacturer.
The Korean Fighter Experimental program is designed to develop and mass-produce homegrown dual-engine combat airplanes by 2025. It's one of the most lavish defense procurement projects here with more than 8 trillion won in development costs in addition to 10 trillion won to be spent in mass production. KAI is South Korea's contractor manufacturer of the program.
With the partnership, Indonesia will be entitled to purchase 50 new planes.
Under the deal signed Sunday, Indonesia will be able to take part in the designing of the airplane, as well as in the production of components for the program.
Read the full story at The Korea Herald