Korea Aerospace Industries forged a strategic partnership Friday with PT Dirgantara Indonesia, a state-run plane developer, as it seeks to expand its foray into the Southeast Asian country’s defense market following the export of its trainer aircrafts.

Under the agreement, the two firms will crank up cooperation in the areas of both military and civilian aviation and the development of unmanned aerial vehicles and other systems by creating a joint panel and holding two rounds of meetings every year. PTDI is also participating in Seoul’s next-generation fighter jet program, called KF-X.

The latest signing took place between KAI president Ha Sung-yong and PTDI president Budi Santoso at the headquarters of Indonesia’s Defense Ministry in Jakarta. Minister Ryamizard Ryacudu and Seoul’s Ambassador Cho Tae-young also attended the ceremony.

“The strategic partnership will enable us to chase two hares at once ― nailing down the KF-X project and cultivating a new market,” Ha said in a statement.

Indonesia has emerged as an up-and-coming market for Korean defense manufacturers since it became the first buyer of KAI’s KT-1, a single-engine turboprop training aircraft, and trainer jet T-50, in 2003 and 2011, respectively. Its Air Force now operates 17 KT-1s and 16 T-50s.

For KAI, the partnership may mean more exports of its products, while paving the way to win a contract for maintenance, repair and operations of the trainers, and joint development of midsize civilian cargo planes.

PTDI, for its part, could capitalize on KAI’s advanced technological knowhow to beef up its own development and MRO capabilities and make its way into Indonesia’s UAV and parts industries.

Late last month, the sides clinched a separate provisional contract in Seoul, which will allow Jakarta and PTDI to invest 20 percent of Korea’s 18.1 trillion won ($15.6 billion) initiative to introduce its first KF-16-class warplanes by 2025 and deploy 120 units by 2032, in exchange for participation in design and parts production, technological sharing and other benefits.

By Shin Hyon-hee (heeshin@heraldcorp.com)