Korea-Indonesia Defense Cooperation Gathers Pace; Joint Development and Localization Needed to Broaden ASEAN Export Base

[Financial News] The Defense Acquisition Program Administration held the 12th Korea-Indonesia Defense Cooperation Committee with Indonesia’s Ministry of Defense in Jakarta on the 11th, to implement the agreements on defense reached at the Korea-Indonesia summit held last April and deepen cooperation between the two countries. The committee was organized as part of follow-up measures to strengthen the defense alliance with Indonesia, a key ally and the only Southeast Asian country to have a Special Strategic Partnership with Korea, and to enhance the competitiveness of K-defense and expand its reach into the ASEAN market.
The committee was co-chaired by Jeong Gi-yeong, head of the Future Power Business Division at the Defense Acquisition Program Administration, and Sri Yanto, director general of the Directorate General of Reserve Forces at Indonesia’s Ministry of Defense. In addition to government officials, 10 major Korean defense and manufacturing companies participated, including Korea Aerospace Industries (KAI), Hanwha Ocean, LIG D&A, Poongsan Corporation, Hanwha Aerospace, Dasan Machineries, Hyundai WIA, Hyundai Motor Company, Kia Corporation, and Korea Aviation Engineering & Maintenance Service (KAEMS). Around 30 local companies, including PT DI, PT PAL, and PT Pindad, were also represented in force, signaling strong interest in expanding practical cooperation between companies in the two countries.
The meeting was held in two tracks: an intergovernmental (G2G) policy consultation and substantive business-to-business (B2B) exchanges. The intergovernmental cooperation session focused on ways to diversify cooperation models between companies in the two countries, moving beyond simple exports of finished products to include joint research and development, localized production, and joint exports to third countries. Participants also reviewed progress on existing major defense cooperation projects being pursued by both countries, including the joint development of the domestically developed T-50 advanced trainer, submarines, and KF-21 fighter, and fleshed out plans for their future implementation.
In the business-to-business exchange session that followed, participating companies from both countries shared their capabilities and cooperation needs in areas including aerospace, naval vessels, ground weapons, and ammunition. This led to tangible results, including the identification of new cooperative projects and the expansion of practical networks between the two countries’ defense industries. The Defense Acquisition Program Administration said the committee reaffirmed Indonesia’s status not merely as a buyer of weapons systems, but as a “strategic defense technology partner” engaged in joint research and development and production.
Jeong Gi-yeong, head of the Future Power Business Division at the Defense Acquisition Program Administration, said, “This 12th Korea-Indonesia Defense Cooperation Committee was an important opportunity to swiftly translate the agreements on defense discussed at the summit into action on the ground,” adding, “Building on our strong trust with Indonesia, we will continue to develop cooperation models that enable the defense industries of both countries to grow together.” Military authorities plan to activate a regular public-private consultation channel to support continued exchanges and close cooperation between companies in the two countries, based on the matters discussed at the meeting.


[email protected] Lee Jong-yoon Reporter