Korea Aerospace Industries (KAI) is seeking to expand exports of its KT-1 basic trainer aircraft to Indonesia. Through a “Made in Indonesia” strategy, the company aims to contribute to the development of the country’s defense industry. Following collaboration on the next-generation fighter project (IF-X), KAI is now looking to broaden cooperation by targeting Indonesia’s aerospace and defense market, which is valued at approximately $10 billion.
According to UK-based defense media outlet Janes, KAI announced during an interview at the Indo Defense 2025 exhibition held in Jakarta on June 13 that it had proposed establishing an assembly line for the KT-1B in Indonesia. The company stated that this initiative is part of its efforts to sell additional KT-1B units to the Indonesian Air Force and confirmed that the proposal has been submitted to the Indonesian government.
The KT-1B is the Indonesian export variant of KAI’s KT-1 Woongbi basic trainer. Since delivering the first unit in 2003, KAI has exported a total of 20 KT-1Bs to Indonesia. In March, KAI signed a $64 million contract with the Indonesian government for an aircraft life-extension program. This involves disassembling and inspecting the aircraft to extend their service life by approximately 150%, thereby demonstrating KAI’s maintenance capabilities and reinforcing its cooperation with the Indonesian Air Force.
Indonesia is actively pursuing military modernization and has been increasing its fighter jet acquisitions. The country has reviewed options including 42 used Chinese J-10 fighters and Russian Su-35s, and has signed a $10 billion agreement with Turkish Aerospace Industries (TAI) to acquire 48 KAAN fifth-generation fighter jets. Industry estimates place the size of Indonesia’s aerospace and defense market at around $10 billion.
As part of its efforts to strengthen its air power, Indonesia is continuing its strategic partnership with South Korea. During the exhibition, Indonesian Defense Minister Sjafrie Sjamsoeddin visited KAI’s booth and reviewed potential expansions of both the KT-1B and T-50i (the Indonesian variant of KAI’s T-50 supersonic advanced trainer) programs, as well as the mass production of the IF-X (Indonesia’s variant of the KF-21 Boramae). The minister expressed strong interest in continuing cooperation with KAI.
KAI also addressed the long-standing cost-sharing issue in the IF-X program during the exhibition. A revised agreement was signed, reducing Indonesia’s financial contribution from approximately $1.15 billion to $430 million. According to South Korea’s Defense Acquisition Program Administration (DAPA), over $290 million has already been received. Once the remaining amount is paid, the IF-X project is expected to gain momentum.
