Korea Faces Trade-Off for Jet Exports to Indonesia

      April 13, 2011 11:37

      Indonesia has chosen Korea Aerospace Industries as the preferred bidder for its trainer jet project, but several issues need to be settled before the deal can be finalized. KAI chief Kim Hong-kyung told reporters Tuesday the price, delivery timing, after-sales part supply and training assistance remain to be discussed.

      One issue in hand is Korea's possible purchase of CN-235 transport planes made in Indonesia as a trade-off for the T-50 export deal. Although the government denies it, experts say there is a strong likelihood that Korea will have to buy the planes to ensure the success of the T-50 deal.

      In 2001, Korea exported 12 KT-1 trainer planes to Indonesia but bought eight CN-235 aircraft in return. Also, Indonesia apparently wants to assemble and produce some of the T-50 trainer jets at its own plants, raising questions over how many units will fall under the deal.

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