[3] Established in 1976 as a state owned company, it has developed its capability as an aircraft manufacturer and diversified into other areas, such as telecommunication, automotive, maritime, information technology, oil & gas, control & automation, military, simulation technology, industrial turbine, and engineering services.

Wiweko Soepono, Nurtanio Pringgoadisurjo, and J. Sumarsono, opened a simple workshop at Magetan, near Madiun.

In 1948, a motorised aircraft, WEL-X was built by Wiweko Soepono using a Harley Davidson engine.

On 24 April 1957, The Experimental Section graduated into The Inspection, Trial, and Production Sub-Depot (Indonesian: Sub Depot Penyelidikan, Percobaan dan Pembuatan) based on Decision Letter of Indonesian Air Force Chief of Staff number 68.

By 16 December 1961, the new body, known as LAPIP (Lembaga Persiapan Industri Penerbangan), was actively negotiating for technological transfers and contracts.

LAPIP was able to secure a joint licensing and production contract with the Polish People's Republic (through the latter's foreign trade monopoly, the Complete Industrial Facilities Export Centre (CEKOP)).

One of the first schools was founded within the machine department of the engineering faculty of the Bandung Institute of Technology by Oetarjo Diran and Liem Keng Kie.

The name 'Nurtanio' is a tribute to Nurtanio Pringgoadisuryo, one of the first aviation pioneers in Indonesia, who designed the Sikumbang, an indigenous all metal aircraft (maiden flight: 1 August 1954).

On 4 July 2011, Indonesia's government said it will inject Rp.2 trillion ($234 million) to Indonesian Aerospace to keep the debt-ridden firm afloat with a view to making a joint venture with EADS.

Apart from these, there are other minor high-tech facilities spread over various assembly lines, laboratories, and service & maintenance units.

(PT Dirgantara Indonesia (DI) – (IAe) Indonesian Aerospace) (Angkatan Udara Republik Indonesia, Depot Penjelidikan, Pertjobaan dan Pembuatan – Indonesian Air Force Research, Development, and Production Depot) (Lembaga Industri Penerbangan Nurtanio – Nurtanio Aviation Industry Institution) Indonesian Aerospace has plans to construct the N-245, designed to carry 50 passengers for about 400 kilometres in remote areas or where passenger demand is low.