South Korea’s US$14 billion fighter jet project is facing payment delays amidst the COVID-19 pandemic, while officials involved have assured it does not mean it is being shut down.
Korea Aerospace Industries — the country’s only aircraft manufacturer — is currently co-developing next-generation fighters with Indonesia.
The MOU was signed in 2010 between Korea’s Defense Acquisition Program Administration and the Indonesian military.
Daewoo Shipbuilding & Marine Engineering is another defense company affected by uncertainties from Indonesia.
Though Indonesia placed a purchase order worth $1 billion to DSME for manufacturing three 1,400-ton submarines in April last year, advance payments haven’t arrived yet.
Indonesia, S.Korea; Procurement programs delayed due to COVID-19 budget cuts