[비즈한국] Local production of the domestically developed basic trainer ‘KT-1’ in Indonesia is being pursued. It is expected that the KT-1 production facilities currently at Korea Aerospace Industries (KAI)047810 will be relocated to Indonesia. While detailed negotiations will take time, if successful, it is expected to create a win-win effect: KAI would secure additional production space to expand its mass-production capacity, while Indonesia would gain a foothold for the revitalization of its aviation industry.
Seok Jong-gun, Minister of the Defense Acquisition Program Administration (DAPA), met with Deputy Minister of Defense Donny Ermawan Taufanto in Jakarta, Indonesia, on the 21st to discuss current issues in defense cooperation and ways to strengthen future defense collaboration. This was the first high-level defense cooperation dialogue held between the two countries following the incident involving the leakage of KF-21 classified information by Indonesian engineers.
At the meeting, Minister Seok stated, “It is a fact that we have been experiencing difficulties due to differences in positions in some areas recently,” adding, “I hope that through this meeting, we can strengthen mutual communication, overcome current challenges, and further solidify the cooperative relationship between our two nations.” This statement appears to refer to the prompt revision of the joint development agreement currently being negotiated between the two countries—specifically, reducing Indonesia's originally committed development contribution for the KF-21 from 1.6 trillion won to 600 billion won, while maintaining the contract for Indonesia to produce 48 KF-21 units locally.
Furthermore, DAPA announced in a press release that the discussions between the DAPA Minister and the Indonesian Deputy Minister of Defense were not limited solely to the KF-21. It included a new, previously undisclosed topic of discussion: the "KT-1 local production plan."
The KT-1 is a basic trainer developed by the Agency for Defense Development (ADD) and produced by KAI. Air Force pilots undergo basic tactical flight training on the KT-1 after their initial training, before moving on to the T-50 advanced trainer to complete their pilot training. Since its maiden flight in December 1991, it has been exported to the South Korean Air Force, as well as Indonesia, Türkiye, Peru, and Senegal, and has remained in active service for 25 years since 2000.
While DAPA and the manufacturer, KAI, did not provide answers regarding the specific details of the KT-1 local production plan, this reporter's research indicates that one of the items under negotiation is the relocation of the entire KT-1 production facility from Sacheon, South Korea, to Indonesia, with all future KT-1 units to be produced there.
According to industry sources, the current KAI production facility in Sacheon is divided into fixed-wing and rotor-wing divisions. However, it is known that KAI is struggling to handle the mass-production lines for the LAH-1 light armed helicopter, the Marine Corps amphibious attack helicopter, the FA-50, and the KF-21, necessitating "secured production space." To address this, KAI has been working on site expansion, including the construction of a new rotor-wing flight center in Jinju, Gyeongnam, last December. However, they reportedly need new production space as the fixed-wing facility is saturated with the workload for various aircraft, including the KF-21, FA-50, KT-1, and outsourced F-15K components.
If the currently discussed local production of the KT-1 in Indonesia proceeds, both the manufacturer KAI and the Indonesian local aviation firm PT DI are expected to benefit. For KAI, securing factory space will facilitate the simultaneous mass production of the FA-50 and KF-21, which are currently seeing a surge in urgent demand. This is expected to lead to additional orders through rapid delivery, similar to the Polish FA-50GF project, which KAI won based on its fast delivery timeline.
Indonesia's PT DI is also expected to benefit significantly from the local production of the KT-1. The Indonesian government has recently faced numerous challenges while attempting to cut government spending, which has temporarily worsened PT DI's financial situation. By securing the KT-1 line in addition to the CN-235, it will become easier for PT DI to retain its production workforce, and ultimately, it is expected to contribute to the development of Indonesia's aviation industry.
However, it is difficult to view only the positive aspects of this cooperation, as defense collaboration between South Korea and Indonesia has not yet fully normalized. In particular, it is difficult to prematurely judge whether the contract for Indonesia to locally produce 48 KF-21s—which was supposed to be finalized in exchange for the reduction of their development contribution—will actually be executed, or if Indonesia's commitment to paying the costs can be verified.
According to anonymous sources, DAPA and the Indonesian government had planned to pursue a contract for local KF-21 production at last year’s 'INDODEFENSE,' Indonesia's largest defense exhibition, but it could not be realized due to repeated postponements of the event. The Indonesian Ministry of Defense, the organizer of the event, has announced that INDODEFENSE will be held from June 11 to 14. Attention is focused on whether defense cooperation between the two countries, which has been strained by financial issues, will return to normal.