Indonesia Considers Commodities to Fund KFX/IFX Involvement

Indonesia is looking to expand the scope of countertrade it will offer South Korea in exchange for payment for its involvement in the joint project to develop the KFX/IFX fighter aircraft. Indonesian officials confirmed in July that a potential countertrade product in the programme could be the Indonesian-built CN235 transport aircraft. Jane's has...

Indonesia is looking to expand the scope of countertrade it will offer South Korea in exchange for payment for its involvement in the joint project to develop the KFX/IFX fighter aircraft.

Indonesian officials confirmed in July that a potential countertrade product in the programme could be the Indonesian-built CN235 transport aircraft. Jane's has now learnt that Indonesia is also looking to offer South Korea a range of commercial commodities in lieu of cash payments for its continuing involvement in KFX/IFX project.

Indonesia and South Korea have been renegotiating Jakarta's financial involvement in the development programme since late 2018. The talks - forced by Indonesian economic constraints - are due to be finalised before October.

Source: www.janes.com