Indonesian Aerospace, also known as PT Dirgantara Indonesia (PTDI), will build four prototypes of the N219 twin turboprop aircraft in 2014.
In its Government Work Plan 2014, Jakarta has earmarked Indonesian rupiah (Rp) 310 billion ($31.9 million) to the programme, says PTDI.
Two of the aircraft will be used for flight tests and two for static tests. In addition, the government has allocated funds for ground tests, ditching tests, engineering tests, and the development of a simulator.
PTDI, however, adds that the figure is a provisional number and could change when Jakarta issues its formal budget for 2014.
In early 2012, Nusantara Buana Air, an Indonesian regional carrier, entered a deal with PTDI to buy 20 N219s. Merpati Nusantara is also believed to be a potential buyer.
State-owned PTDI developed the N219 from the EADS CASA C-212.