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Indonesia-North Korea diplomatic renewal raises concern over KF-21 technology leaks and Asia-Pacific defence trade

Indonesia–North Korea Rapprochement Raises Alarm for South Korea’s KF-21 Defence Export Strategy

Mohd Hanif Ismail - : Oct 18, 2025 - : 6:35 pm

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The recent renewal of diplomatic ties between Indonesia and North Korea has ignited concern in South Korea over the security of advanced fighter-jet technologies developed through their joint industrial collaboration. The move, while framed by Indonesia as a step in its broader independent foreign-policy posture, has drawn scrutiny because Indonesia is also a key partner in the development of the KF‑21 Boramae programme — a major strategic defence and export vehicle for South Korea.

At issue are three interconnected elements. First, Indonesia’s foreign-ministerial visit to Pyongyang in October 2025 and the signing of a fresh memorandum of understanding (MoU) with North Korea for expanded cooperation in politics, socio-culture, technical and sports sectors raise questions about whether technically sensitive contacts might indirectly expose the KF-21 supply-chain to unintended risk. Second, Indonesia’s troubled financial and reliability footprint in the KF-21 project itself has already been a matter of concern for Seoul. And third, in the Indo-Pacific context, any perceived technology leak or industrial-base weakness has ripple effects for South Korea’s export-ambitions and regional defence-co-operation.

According to a report in the The Korea Times, the Indonesian foreign-minister met North Korean foreign minister Choe Son-hui in Pyongyang on 11 October and the two sides signed a renewed MoU establishing a bilateral consultation mechanism. The Korea Times adds that while Seoul believes its nondisclosure agreements (NDAs) governing the KF-21 programme remain intact, Indonesian payment delays and prior "USB flash-drive" leak-scandals have already marred Jakarta’s credibility.

Background on the KF-21 programme
The KF-21, developed by Korea Aerospace Industries (KAI) in partnership with Indonesia’s PT Dirgantara Indonesia (PTDI), is positioned as a 4.5-generation multirole fighter jet targeted for entry into service in the mid-2020s. The initial cost estimate was around ₩8.1 trillion (approx. US$5.9 billion) and Indonesia originally pledged to fund 20 % of that cost in return for technology transfer and rights to build up to 48 aircraft in Indonesia. However, Indonesia has repeatedly delayed payments and in August 2024 the Defense Acquisition Program Administration (DAPA) approved a reduction of Jakarta’s contribution to ₩600 billion (approx. US$440 million) — nearly a two-thirds cut from the original sum. Furthermore, in 2024 Indonesia was implicated in a technology-leak probe when Indonesian engineers were found attempting to remove a storage device containing sensitive KF-21 technical data.

Given South Korea’s ambitions for the KF-21 as a platform for Southeast Asian defence markets, the Indonesian re-engagement with North Korea may prompt tighter safeguards, review of component-flows, and more conservative technology-transfer terms — all of which have downstream trade implications for suppliers, sub-contractors and service-providers in the Asia-Pacific.