Indonesia's IAe to receive $234m equity infusion from govt

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The Indonesian government has announced that it will inject funds into the state-owned aerospace company, Indonesian Aerospace (IAe).

IAe will receive Indonesian Rupiah (Rp) 2 trillion ($234 million) from the government's 2012 budget and the funds will be used to increase its working capital, reduce part of its debt and replacing existing machinery.

It also hopes to complete its restructuring plans and stabilise in a year or two, said IAe's spokesman.

The company is working on freezing the design and developing a prototype for the IAe N219, a 19-seat turboprop aircraft that is designed and built by IAe. It hopes to deliver the first aircraft from 2014 onwards, added the spokesman.