Indonesian Aerospace is to look at developing civil transport aircraft from 19 to 50 seats under a strategic co-operation with Airbus Military.
This possibility is among various aspects contained in an agreement between the two sides which is intended to "stabilise" the aerospace firm and outline a growth plan for the next 10 years.
Airbus Military said an analysis of the civil market had identified "possible product developments" for the regional passenger aircraft sector.
Such initiatives are aimed at "enhancing air connectivity" within Indonesia as well as with the surrounding area.
Airbus Military said its partnership with Indonesian Aerospace would be intended to "capture a substantial share" of the domestic and export market in the sector.
It said the civil transport development formed part of a new pact setting out "concrete initiatives" for an 18-month "recovery plan" for Indonesian Aerospace, with Airbus Military supporting modernisation of engineering, marketing and maintenance processes.
Source: Air Transport Intelligence news