State-owned PT Merpati Nusantara Airlines on Monday placed an order for ten C-212-400 light transport aircraft from state aircraft maker PT Dirgantara Indonesia (DI).

Merpati president director Hotasi Nababan and DI president director Budi Santoso signed an agreement witnessed by State Minister for State Enterprises Sofyan A. Djalil, Antara news agency reported.

The airplanes, to serve routes in eastern Indonesia especially Kalimantan, Nusa Tenggara and Sulawesi, will be financed by state lenders Bank BRI and Bank BNI. Each bank will provide a loan of US$50 million.

Budi said the unit price had yet to be determined because the production facilities had yet to be sent from CASA-EADS facility in San Pablo, Spain to DI assembly plant in Bandung.

Separately, DI spokesman Rakhendi, said the cost of a standard C-212-400 was $US5.5 million.

"The cost will be increased if a customer requests additional features," he told The Jakarta Post over the phone.

The 26-seater C-212-400 is the latest version of the C-212 developed by CASA-EADS, a Spain-based unit of European Aeronautics Defense and Space (EADS).

Currently DI makes the older NC-212-200 version under license from CASA-EADS. The older version costs some $4.5 million.

"CASA-EADS and DI has signed a deal in 2006 transferring all production of C-212-400 to Bandung," Rakhendi said.

Once we receive the production facilities, we will start making C-212-400. Currently we are still finishing seven NC-212-200 planes."

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