Indonesia to Buy 50 Boeing Jets in New US Trade Agreement
Indonesia will purchase 50 Boeing aircraft from the United States as part of a new bilateral trade agreement that also lowers U.S. import tariffs on Indonesian products from 32% to 19%. The deal was announced by the Trump administration on July 15.
According to the White House, most of the aircraft will be Boeing 777s, though specific models and timelines were not disclosed. Indonesian President Prabowo Subianto confirmed the acquisition, stating the purchase supports efforts to strengthen Garuda Indonesia, the country’s national carrier. “We do need Boeing aircraft to expand Garuda. Garuda is our pride,” he said during a press conference.
President Subianto also affirmed that Indonesia would continue procuring aircraft from Airbus, signaling a balanced fleet strategy. Jakarta-based outlet Bloomberg Technoz previously reported that Garuda Indonesia is considering acquiring up to 79 Boeing jets. However, Minister of State-Owned Enterprises Erick Thohir noted that an earlier fleet proposal had been rejected by the national Business Competition Supervisory Commission.
According to ch-aviation data, Garuda Indonesia currently operates a fleet of 79 aircraft, including Airbus A330s and Boeing 737-800s and 777-300ERs. It holds outstanding orders for 49 Boeing 737-9 MAX jets, four A330-800Ns, and nine A330-900Ns, though the airline has stated it does not plan to take delivery of the 737 MAX or A330-800s.
Subsidiary Citilink operates a fleet of 55 aircraft, including A320s and ATR72-600s. A recently approved restructuring plan aims to grow Garuda Indonesia Group’s fleet to 120 aircraft and expand its route network by 2029, supported by a $405 million injection from sovereign wealth fund Danantara.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com