Actually no Indonesia's own produced missiles are supposed to be armed on to the KCR-60s not the KCR-40s with a different launcher.
Here is a quote made in 2013 about plans to produce them in Indonesia;
They are not a joint venture either, they are license built meaning the technology is solely from PRC.
It is technology licensing the way I read the agreement with the first hundred are supplied by China BUT SEEM LIKE THE INDONESIA IS DOING THE SHIP INTEGRATION THEMSELVES. The missile has been tested with good result previously. The delay in launch is most likely due to failure either in communication system or ship integration
google translation
Cooperation has been agreed among others: Military Equipment Acquisition, Transfer of Technology of military equipment, Joint Production and Marketing Joint military equipment. (Photo: casic)
Cooperation C-705 missiles China Indonesia
At a meeting of 27 to 28 August 2015 Beijing China. the delegation discussed with the Ministry of Defence Indonesia SASTIND China is seeing the development of the meetings initiated in DICM to 3, such as:
-Rudal Anti Ship C-705,
Pelvic -Rudal QW-3,
-KS-1A / FK-3 Air Defence Missile,
-Smart Hunter TH-S311 / 711 of CPMIEC,
-GCI Radar & Deci Program of CETC,
-JRSCCS & KCR-60 of CSOC,
-UAV (Unmanned aerial vehicle),
-PGB (Precision guided bomb),
-ly-80 Air Defence Missile of Alit,
Aa Gun & Ammunition of NORINCO and so on.
Contracts to 2 C-705 missile cooperation between Indonesia and China signed in 2013, through a partnership because of the closeness and friendship of the two countries.
As for the contract to a third of the C-705 missile cooperation signed by the end of 2014. As a follow up of the contract, dikirimlah missiles C-705 (corresponding to the contact 3) to be tested for test firing by Indonesia in 2015. The Credit Agreement approved soon and L / C opening soon.
Indonesia was preparing everything needed to test the missile C-705. China will set up a program for the navy forces to conduct training in China, after Indonesia approved the missile tests conducted by the factory.
China advised the Navy to purchase a vehicle anti-ship missile launcher surface of the C-705, for easy operation, maintenance and repair at a later date.
Discussion Program transfer technology (ToT) C-705 missiles was raised in meeting DICM to 4, dated August 27, 2015 in Beijing China. SASTIND China will soon learn the latest basic agreement of the Missile Technology Transfer Program C-705, between the Ministry of Defence and SASTIND China, the agreement was proposed by the Ministry of Defence. China immediately responded.
Discussions between CPMIEC China with representatives of PT DI concerning facilities ToT Program C-705 missile took place at DICM to 4, which discusses: the amount of material and the number of missiles that will be prepared.
Indonesia will prepare a budget for the purposes of providing material and facilities from the Final Assembly Line C-705 missiles and missile components (SKD parts).
PT DI designated by KKIP as a leader who worked on this project, will be provided by the Technology Transfer CPMIEC China, so has the ability of producing C-705 missile system.
PT DI will become a supplier to the Indonesian Navy, having the ability to produce consistent C-705 missiles.
Both parties then make a list / register sequence of work to be undertaken by PT DI as missile shock / overload test system, electric system pre-installation and so on.
PT DI said unable to meet and do most of the list to be done (there are 10 items). PT DI also asked to share knowledge and techniques of preparation installation of missiles to the Navy.
PT DI requested documentation Transfer of Technology and Technical Training ToT exempt from fees. But the Chinese side undertakes if Indonesia least ordered 100 missiles C-705 (missile SKD) in Phase I.
Local missile-related content will be provided by PT DI.
CPMIEC China requested that at least made the purchase of 50 C-705 missiles in SKD form, to start the transfer of technology. ToT and technical documentation will be provided free of charge on ToT Phase I, if Indonesia bought 100 missiles in SKD form. Its formulation is being studied by both parties.
PT DI said it would examine internally and report them to the Ministry of Defence Indonesia. (JakartaGreater)
Radar Cooperation Indonesia - C
