Is the KF-21's First Export Imminent? KAI Signs an MoU With Indonesia

[Financial News] Korea Aerospace Industries (KAI) is expanding cooperation with Indonesian state-owned aerospace company PTDI across the aviation industry, from fighter production to commercial aircraft development. Expectations are growing that the first export of South Korea's KF-21 fighter could be imminent.
KAI announced on the 13th that it had signed three memorandums of understanding (MOUs) with PTDI on the sidelines of the 12th Korea-Indonesia Defense Industry Cooperation Committee (DICC), held at Indonesia's Ministry of Defense on the 11th. KAI CEO Kim Jong-chul and PTDI President Gita Amperiawan, among others, attended the signing ceremony.
The agreements cover three areas: follow-on production of the KF-21, aircraft simulators, and commercial aircraft. The key is to expand cooperation—which has so far centered on military aircraft exports and joint development—to aircraft component production, training systems, and civil aircraft development.
In the area of follow-on production for the KF-21, the two sides agreed to continue local production in Indonesia of three types of pylon structural assemblies following initial production.
A pylon is a structure used to mount external equipment, such as missiles or fuel tanks, on fighter wings and other parts of an aircraft. PTDI will participate as a supplier of these components and is expected to supply parts needed for follow-on production of the KF-21.
In the aircraft simulator sector, the two sides will cooperate on development of a ground-based training system (GBTS) and follow-on support. They plan to identify joint business opportunities and strengthen their capabilities in related areas through technology exchanges and the training of skilled personnel.
The two sides are also broadening their cooperation to include commercial aircraft. In response to rising demand in the global market for medium-sized passenger aircraft, they agreed to share information on market analysis, technology, and design, and to explore the possibility of future joint ventures. The aim is to extend the partnership built in the defense sector to the development of civil aircraft.
Indonesia is a major export market for KAI's aircraft and a partner in the KF-21's international joint development. KAI has supplied Indonesia with 20 KT-1B basic trainers and signed a contract last year to extend the airframe life of KT-1Bs operated by the Indonesian Air Force. This past July, it delivered six additional T-50i supersonic advanced trainers, bringing the cumulative number supplied to 22.
On this basis, KAI expects Indonesia to become the first country to acquire the KF-21 overseas. It believes that if Indonesia, a participant in the joint development, goes on to acquire the fighter, this would also help the KF-21 enter overseas markets.
KAI CEO Kim Jong-chul said, "This MOU signing is an opportunity to take practical industrial cooperation, including follow-on production of the KF-21 and simulators, to the next level, building on the trust the two companies have developed." He added, "We will broaden discussions to include cooperation on the development of medium-sized commercial aircraft and create new growth drivers in the global aerospace market together with Indonesia."

[email protected] Jung Won-il Reporter