South Korea has approved a one-trillion won cut in Indonesia’s payment for a joint fighter development project.

The Defense Acquisition Program Administration(DAPA) said on Friday that its defense project committee approved a plan to reduce Indonesia's contribution for the joint project to 600 billion won from one-point-six trillion won. That's a reduction of over 735 million U.S. dollars.

The DAPA said that the approval considered various factors, including bilateral cooperative relations and the possibility of securing the funds, adding that it would properly wrap up cost-sharing talks with Indonesia to ensure the project will be completed successfully.

Indonesia formerly agreed to shoulder 20 percent of the total project cost, amounting to one-point-seven trillion won and later reduced to one-point-six trillion won, by June 2026. 

After repeated payment delays, Jakarta recently suggested covering a total of 600 billion won, or about a third of the initial contribution, while also reducing the transfer of technical information from South Korea.