Airbus Military and PT Dirgantara Indonesia (PTDI) have signed a comprehensive agreement for the development of the NC212i, an upgraded version of the C212 tactical transport.
"Under the terms of the agreement, the companies will be long-term, risk-sharing partners with engineering and manufacturing being led by PTDI, supported by Airbus Military, and certification being an Airbus Military responsibility," says Airbus Military.
"The aircraft will be delivered from Bandung in Indonesia and will be promoted and supported by PTDI and Airbus Military teams worldwide."
The deal was signed at last week's Langkawi International Maritime & Aerospace Exhibition in Malaysia.
The two companies first announced plans for the NC212i in November 2012.
The aircraft will offer new digital avionics and a new autopilot. The civilian variant will have capacity for up to 28 passengers, compared with 25 for the C212.
Airbus Military forecasts a market for 400-450 aircraft of this size in the next decade.