Indonesia and South Korea on Friday signed a memorandum of understanding to increase defense cooperation between the two countries.

The MoU was signed by Indonesian Defense Ministry official Pos M. Hutabarat and Lee Yong-Dae from the South Korean defense force policy bureau.

“We have agreed to hold regular, bilateral talks on the joint production, marketing and development of defense systems that are used in Indonesia and South Korea," Pos said in a press conference after the signing.

"We will also exchange information on the defense industries between the two countries,” Pos said.

The MoU signing was part of a visit of South Korean defense officials and industry heavyweights to Indonesia led by its defense minister, Gen. (Ret.) Kim Kwan-Jin.

Kim and his delegation were greeted by a military welcome at the ministry compound before the bilateral meeting.

One topic of discussion was the joint production of Korean fighter planes, or the KF-X/IF-X project.

The project, whose 18-months initial phase until 2013 is estimated to cost $8 billion, required Indonesia to shoulder 20 percent of the cost, or around $1.6 billion. The rest will be financed by South Korea.

The joint production is estimated to manufacture fighter planes by 2020, with Indonesia set to buy 50 of an estimated 200 units expected to be produced.

“Indonesia can learn from South Korea to be independent with its defense industry, just like South Korea has previously learned from other developed countries such as the United States,” Defense Minister Purnomo Yusgiantoro said.

Kim responded that his country is “willing” to share with Indonesia its experience to build its own defense industry.

The government has given the defense ministry a boost by allocating the largest portion of its 2012 budget, or Rp 64.4 trillion ($7.5 billion), for military spending.