The Construction of Indonesia’s Defense Diplomacy in Joint Development KFX/IFX

By

Erlinda Matondang

Introduction
Indonesia is a country which has a big role in international relations political affairs in
Asia, especially Southeast Asia. It has strategic geography which has to be saved by its
military and defense force. However, it has a big matter with its defense system and
condition. Most of its military assets already obsoleted and they need modernization or they
have to be changed with the new technology system. 1
Indonesia created Minimum Essential Force (MEF) in 2012 to fulfill military‟s needs
to supporting their job to defend the country. 2 Simultaneously, it has planned to push defense
industry entering autonomous system by implementing transfer of technology policy
following defense industry cooperation. Therefore, the government of Indonesia would be
more interested to buy defense industry‟s product with a package of technology transfer than
others been not.
South Korea or the Republic of Korea (ROK) offered research and development
cooperation in fighter project which called Korea Fighter Experiment (KFX). Its offer is
based on Joint Declaration between the Republic of Indonesia and the Republic of Korea on
Strategic Partnership to Promote Friendship and Cooperation in the 21st Century showing the
strategic partnership between two countries. This cooperation is very important for Indonesia
because there is transfer of in fighter development. Moreover, fighter is one of the armaments
having the greatest deterrence effect on international interactions, other are submarine and
missile. 3 In other sentences, KFX project called Indonesia Fighter Experiment (IFX) by
Indonesia, is the most important and greatest cooperation because of two reasons, i.e. transfer
of technology and the need of its military.
Indonesia invests 20% in KFX/IFX project. By this investment, Indonesia will get
more than 3 squadrons or 50 units of IFX. It is very small cost to get a great technology in
fighter development. That is why Indonesia does not have a big role in the project.

1
Tom Rutherford, “Military Balance in Southeast Asia,” in Research Paper 11/79, (London: House of Common
Library, 2011), p. 2.
2
Bruno Hellendorff, “Military Spending and Arms Transfers in Southeast Asia: A Puzzling Modernization,” in
GRIP Analysis, (Brussels: GRIP, 2013), p. 13.
3
Andi Alisjahbana, interviewed by author in 28 September 2015

1
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It is not an easy to participate in cooperation with 20% investment for the exclusive and
expensive defense industry cooperation. There are so many challenges for Indonesia who
does not have both the big amounts of money contribution and the technologies basic on
fighter development. Nevertheless, Indonesia still stands and negotiates every single
opportunity to overcome any challenges in KFX/IFX project.
Regarding the phenomena happens in KFX/IFX project, the essay tries to answer a
question, viz. how is Indonesia‟s defense diplomacy in KFX/IFX project? The explanation of
this question will bring to discussion any matter on how Indonesia‟s efforts to maintain the
condition and its position are, how the Indonesia‟s defense diplomacy construction is, and
what the most important point driven the deadlock negotiation is. Over all, this essay just
focus on the discussion of Indonesia‟s defense diplomacy construction with study case
constituted KFX/IFX project.

Indonesia’s Defense Diplomacy Construction and Its Problem

As the art to achieving the national interest in foreign policy, as corridor, diplomacy is
done to creating the agreement reached with other independent country. 4 Explicitly, J. Baylis
(2014) defined diplomacy in two perspectives. Firstly, the macro perspective putting
diplomacy as a communication process in global system by creating cooperation to keep the
world peacefully. In this perspective, world politics is the essential points Secondly, the
micro perspective saying diplomacy is the act resulted by any thoughts of international actors
in global system. The act is done in foreign policy as a corridor in attaining national
interests.5 Thus, diplomacy has to be viewed in two sides, i.e. world politics and foreign
policy.
There are many kinds of diplomacy classified by the sector managing for. Defense
diplomacy is one of them. Defense diplomacy established by United Kingdom as a policy to
do low cost propaganda in order to develop its military and technology capability. 6 Defense
diplomacy is like other kinds of diplomacy. It is influenced by world politics and foreign
policy.

What is the difference defense diplomacy and others? It was the great question. There
is no one can give the best definition or theory about what defense diplomacy is and why it is
4
R. Jackson, Classical and Modern Thought on International Relation, (Hampshire: Palgrave Macmillan,
2005), p. 52.
5
J. Baylis, S. Smith and P. Owen (Ed.), The Globalization of World Politics: An Introduction to International
Relations 6th Edition, (New York: Oxford University Press, 2014), p. 388.
6
G. Mulloy, “Japan‟s Defense Diplomacy and „Cold Peace‟ in Asia,” in Asia Journal of Global Studies, Vol. 1
(1), p. 5.
 3

differentiated than others. The simple way to answer that question is by defining „defense‟
terminology.
Defense is not always about military. When we are talking about defense, nonmilitary
agents are included in the discussion. The term „defense‟ refers to military, national training
institution, ministry and agent of research and development. 7 It means defense is not only
talking about military, weapons and war, but also nonmilitary aspects, like university,
ministry and research and development agents. The understanding of „defense‟ term is
enlarged in Indonesia‟s defense system.
Indonesia‟s defense system consists of three components. First is main component.
The main component is military force or Tentara Nasional Indonesia (TNI). The Military
Balance 2014 published data showing Indonesia‟s active soldiers are 395,500. 8 Second is
reserve component which contains all Indonesian who have gotten training in military, such
as student regiments and coast guard. Third is endorse component consisted of Indonesian
with their professions. 9 It means that whatever the professions to do, wherever they are and
whenever the threats come, the people of Indonesia have to protect and keep save countries‟
sovereignty.
Using the system like this, how the Indonesia‟s defense diplomacy is and who do that
are rising as the big questions. Military as the main component of defense is standing as the
instrument of diplomacy. It can be a destiny in cooperation with other countries. The reserve
and endorse component have the same position. Therefore, we can say that in Indonesia‟s
defense diplomacy construction, defense components are the instrument and destiny of
diplomacy.
Should we look the actors of defense diplomacy, it is officially taken by Indonesia‟s
government, especially Foreign Affairs Ministry, Defense Ministry and TNI. However, we
have to remember that industry, local people, and others can do defense diplomacy too if it is
done for defending Indonesia‟s sovereignty, strengthening defense system and supporting
TNI in doing their job.

7
KA Muthanna, “Military Diplomacy,” in Journal Defense Studies, Vol. 5 (1), January 2011, p. 2.
8
The International Institute for Strategic Studies, The Military Balance 2014, (New York: Routledge, 2014), p.
247.
9
Department of Defense of Republic of Indonesia, Buku Putih Pertahanan Indonesia 2008, (Jakarta:
Department of Defense of Republic of Indonesia, 2008), p. 101.
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National Interests

Strengthening Defense System

Main
Component Reserve Endorse
World World
Component Component
Politics Politics
(TNI)

Foreign Policy: Independent and Active

Source: managed by author

Figure 1 The Construction of Indonesia‟s Defense Diplomacy
Figure 1 depicts the construction of Indonesia‟s defense diplomacy. Defense
diplomacy is done based on foreign policy which is standing in independent and active
principles. There are three pillars positioned as the instruments of defense diplomacy, viz.
defense components. These instruments are used in world politics dynamics to strengthen
Indonesia‟s defense system which needs modernization of weapons, the autonomous of
defense industry, etc. The final purposes of defense diplomacy are national interests written
in Indonesia‟s constitution.

Joint Development KFX/IFX and Its Dynamics

Indonesia and ROK have had a good relationship since more than 40 years ago. As
the peak of this relation is the shaping of strategic partnership declaration in 2006. There are
several concern sectors which are pointed in this declaration. One of them is defense
cooperation.
ROK offered Indonesia to join research and development of Korean Fighter project in
last quarter of 2008. In 2009, both of the parties agreed to collaborate in KFX Project which
then named IFX (Indonesia Fighter Experiment) by Indonesia‟s government. 10 This project
has a great suitability with Indonesia‟s plan on defense as written in Minimum Essential
Force (MEF) which has to be achieved in 2020.
Indonesia contributes 20% in KFX project. The Indonesia‟s contribution will result
more than 3 squadrons or 50 units IFX estimated would be lately finished in 2024 or 2025.11
Since July 2010, Indonesia has reportedly loafed away IDR 1.6 trillion and it is estimated just

10
Eris Heryanto, interview by author in 4th August 2015.
11
Ibid.
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USD 165 million by Defense Acquisition Program Assistant (DAPA).12 It is consider as

cheap cost which Indonesia has to pay for the truly expensive project, like fighter research
and development.
The KFX/IFX Project has four phases named Technical Development Phase (TDP),
Engineering and Manufacture Development Phase (EMDP), Production Development Phase
(PDP) and Marketing Phase (MP). TDP has been finished in 2012. This phase resulted
requirements system.13 In the process to hold EMDP, there were some problems causing it
was postponed by ROK. The postponement happened in 2012 to 2014. On July 2014,
Indonesia and ROK agreed to begin the EMDP in the last of 2015. However, it is still in
negotiation process.
ROK as the leading country in this project has chosen model like F-35 as the
competing design. This choice shows the development partner who will be engaged in the
project is Lockheed Martin, Inc. 14 ROK get transfer technology on purchasing F-35 from
United States (U.S.). There are 21 technologies will be transferred to ROK and they will be
used in KFX/IFX project. However, U.S. refused to transfer four technologies which will be
the future of this fighter, they are active electronically scanned array radar, AESA; infrared
search and track, IRST; electronics optics trageting pod, EOTGP; and radio frequency or RF
jammer.15
Moreover, Indonesia is facing the restriction in technological transfer. ROK
represented by Korean Air Industry (KAI) always said that Indonesia has to negotiate with
U.S. to access its technologies.16 The government of Indonesia, especially Ministry of
Defense and Ministry of Foreign Affairs, herewith PT Dirgantara Indonesia as the leading
industry on KFX/IFX project, still tries to negotiate the transfer of technology, although it
looks like in deadlock and it will not run well.

The Construction of Indonesia’s Defense Diplomacy in Joint Development KFX/IFX

Indonesia has many problems in the construction of its defense diplomacy. It does not
have rigid foundation. It is very flexible and its flexibility causes several countries

12
Defense Industry Daily, (19 November 2015), “KF-X Fighter: Korea's Future Homegrown Jet,” in
http://www.defenseindustrydaily.com/kf-x-paper-pushing-or-peer-fighter-program-010647/, accessed on 20
November 2015.
13
Anne Kusmayati, interviewed by author in 4 September 2015.
14
Defense Industry Daily, op.cit.
15
Donald Kirk, (16 October 2015), “U.S. Tech Rebuff Slams Korea's KFX Fighter,” in
http://www.forbes.com/sites/donaldkirk/2015/10/16/u-s-rebuff-of-tecnology-tranfer-jeopardize-korean-dream-
of-making-its-own-kfx-fighter/, accessed on 20 November 2015.
16
Ferry Akbar Pasaribu, interviewed by author in 4 August 2015.
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underestimate Indonesia‟s movement in international affairs. It impacts the interaction in

KFX/IFX project.
Indonesia‟s defense diplomacy construction does not also have the good pillars. The
main component of defense is not completely given the modern weapons. The TNI just has
the old weapons with limited capability. Meanwhile, reserve and endorse component have not
ready yet. The people of Indonesia do not know what their functions in defense are and how
they do it. This condition shows how Indonesia‟s capability to do defense diplomacy is very
weak. The weak capability will result the disadvantages for Indonesia‟s bargaining position
in KFX/IFX negotiation and implementation of KFX/IFX project.
The KFX/IFX project in EMDP will engage three countries, i.e. Indonesia, ROK and
U.S. It means there is triangle connectivity in this project. Indonesia has to interact with ROK
and U.S., those are vises versa for ROK and U.S.

Indonesia

ROK U.S.

Source: Managed by Author

Figure 2 Interaction Interstate in KFX/IFX Project

Based on Figure 2, the main interaction is happened between Indonesia and ROK as
the direct actors in the KFX/IFX project. The U.S. holds the role as the owner of technologies
which will be used in KFX/IFX. That is why Indonesia and ROK have to interact with U.S.
In Indonesia and ROK interaction, ROK is superior of Indonesia. ROK invests 80% in
KFX/IFX development, so the ratio of the investment ownership is 1:4. It is unbalance. ROK
also has the core technologies for fighter. Therefore, ROK has a capability to determine the
continuity of this project. It also has the power to decide what the technologies would be
given to Indonesia.
Indonesia has limited interaction with U.S. Indonesia-U.S. relations have been better
since 2010. The cooperation in defense increases in any kind of implementation. However,
Indonesia still needs intensive communication for transfer of technology in defense industry,
 7

especially in KFX/IFX development. Therefore, Indonesia needs to build direct negotiation

with U.S.
U.S. has the applicable technologies transferred to ROK and will be used in
KFX/IFX. It means U.S. has control on KFX/IFX indirectly. If Lockheed Martin joins the
project in EMDP, it will be raising the control of U.S. both directly and indirectly. The rising
of U.S. control means Indonesia will be the most inferior parties in the project.

Conclusion
Indonesia has a big matter in its defense system and diplomacy. It doesn‟t have a good
posture of military. Moreover, it doesn‟t have a good reserve and endorse component because
the less of understanding about defense system in its society. That is why Indonesia‟s role in
KFX/IFX is standing as a minority and it should do concordance strategy in rational foreign
affairs.
In concordance strategy, Indonesia just can join and follow every process provided by
ROK and U.S. In the other words, all the decision is determined by ROK and U.S. This
strategy will cause ROK and U.S. lead the project. The most possible is U.S. will be the main
leader in this project because he has the applicable technologies.
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References

Baylis, J., Smith, S., dan Owen, P. (Ed.). (2014). The Globalization of Word Politics: An
Introduction to International Relations 6th Edition. New York, N.Y.: Oxford
University Press.
Defense Industry Daily. (19 November 2015). “KF-X Fighter: Korea's Future Homegrown
Jet.” In http://www.defenseindustrydaily.com/kf-x-paper-pushing-or-peer-fighter-
program-010647/, accessed on 20 November 2015.
Department of Defense of Republic of Indonesia. (2008). Buku Putih Pertahanan Indonesia
2008. Jakarta: Department of Defense of Republic of Indonesia.
Donald Kirk. (16 October 2015). “U.S. Tech Rebuff Slams Korea's KFX Fighter,” in
http://www.forbes.com/sites/donaldkirk/2015/10/16/u-s-rebuff-of-tecnology-tranfer-
jeopardize-korean-dream-of-making-its-own-kfx-fighter/, accessed on 20 November
2015.
Hellendorff, B. (2013). “Military Spending and Arms Transfers in Southeast Asia: A
Puzzling Modernization.” GRIP Analysis.
Jackson, R. (2005). Classical and Modern Thought on International Relation. Hampshire:
Palgrave Macmillan.
Mulloy, G. (2007). “Japan‟s Defense Diplomacy and „Cold Peace‟ in Asia.” Asia Journal of
Global Studies, Vol. I (1): 2—14.
Muthanna, KA. (2011). “Military Diplomacy.” Journal of Defense Studies, Vol. 5 (1), Januari
2011, pp. 1—15.
Rutherford, T. (2011). “Military Balance in Southeast Asia.” Research Paper 11/79, Library
of Common House.
The International Institute for Strategic Studies. (2014). The Military Balance 2014. New
York: Routledge.