ARJ21. Courtesy, COMAC

Indonesia’s state-run Merpati Nusantara Airlines (MZ) has signed a memorandum of understanding for 40 Commercial Aircraft Corp. of China (COMAC) ARJ21-700s, a 100-seat regional aircraft. This is COMAC’s largest order.

Each aircraft cost $30 million each, according to Indonesia’s Ministry of State-Owned Enterprises minister Dahlan Iskan.

MZ president director Sarjono Djony Tjitrokusumo said delivery is scheduled to begin in 2014 with 10 aircraft per year through 2017.

Sarjono said the purchase contract includes a clause to involve the Indonesian aviation industry, PT Dirgantara Indonesia (PTDI), in the aircraft’s manufacturing process. He confirmed MZ has secured financing commitments from Chinese financers for the aircraft purchase.

MZ has 35 aircraft in its fleet, comprising 11 Boeing 737s, five DHC-6s, two CASA212s, three Fokker 100s and 14 MA60s, with services mostly in eastern Indonesia.