SEOUL (REUTERS) - South Korea said on Monday (Oct 22) that a project to develop a fighter jet with Indonesia was on track, and it will negotiate a way for Indonesia to pay its contribution, of which about US$200 million (S$275 million) is unpaid.

Indonesia and South Korea agreed in 2014 to develop the"KF-X" fighter jet.

The project is estimated to be worth about US$7.9 billion (S$10.9 billion), and Indonesia had agreed to pay 20 per cent of the development costs, but a senior Indonesia official said last Friday that it was seeking "lighter" financial terms.

South Korea's arms procurement agency, the Defence Acquisition Programme Administration, told a press briefing that the project was on track.

"During the South Korea-Indonesia summit in September, it was agreed to continue developing the KF-X," the spokesman said.

"About the contribution, we plan to negotiate additionally."

The spokesman confirmed that Indonesia's unpaid contribution was about 230 billion won (S$280 million), from between the second half of 2017 and the first half of 2018.

Indonesia's request on the financial terms of the deal comes as it is trying to support the rupiah, which is trading near a 20-year low, and to reduce the use of foreign exchange reserves.