Indonesia and South Korea are ready to begin a joint project on jet fighter production in 2012. The project would be able to build a jet figther prototype in 2020.
The planned cooperation for the project, dubbed the KF-X project, was initiated in 2006.
The joint project is widely seen as a pilot project for Indonesian military in revitalising defense industry.
Officials say the KF-X would have capabilities between those of the F-35 and F-16, although they are presumably referring to its size and thrust, since a stealth aircraft fielded in 2020 would be expected to comfortably outperform 1970s-era designs.
Indonesia and Korea will produce as many as 200 fighter jets for both Air Forces.
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