Indonesia’s national carrier, Garuda Indonesia, will increase its planned aircraft order from Boeing to 79 planes, according to State-Owned Enterprises Minister Erick Thohir. The announcement forms part of a broader trade strategy involving ongoing negotiations with the United States over impending import tariffs.
Speaking at the legislative complex in Senayan, South Jakarta, on Tuesday, Minister Thohir stated the new agreement replaces a previously cancelled deal that was annulled during Garuda’s court-supervised debt restructuring process (PKPU).
“The new total is 79 aircraft,” he said, as reported by Kumparan. The revised order marginally exceeds earlier projections of 50 to 75 planes, which had been disclosed by Garuda Indonesia’s President Director, Wamildan Tsani Pandjaitan, earlier this month.
While discussions with Boeing remain at a preliminary stage, Wamildan noted that the airline is likely to acquire the 737 Max and 787 Max models.
The agreement is part of Indonesia’s wider diplomatic effort to respond to a 32% import tariff imposed by the US on Indonesian goods. Although US President Donald Trump has delayed implementation, he warned President Prabowo Subianto in a recent letter that the tariff would take effect from 1 August unless a new agreement is reached.
Minister Thohir underscored that the aircraft deal aligns with the government’s broader objectives of reducing trade imbalances and boosting energy security. He noted that both Garuda Indonesia and state-owned energy firm Pertamina are supporting the trade discussions with Washington.
“This is also about strengthening our energy self-sufficiency through overseas investment via Danantara, and addressing our aircraft shortage,” he said.
As part of Indonesia’s counter-proposal, the government has committed to up to US$34 billion in US imports, focusing largely on crude oil and aircraft. Pertamina is expected to be the major contributor to this import figure.
Garuda Indonesia is also set to receive 6.65 trillion rupiah in funding from the state asset management agency Danantara. A substantial portion of this capital will be directed towards its low-cost subsidiary, Citilink Indonesia.
The Ministry of Energy and Mineral Resources has confirmed that plans are progressing to import oil and gas from the United States. Deputy Energy Minister Yuliot Tanjung stated that the government awaits the outcome of negotiations led by Coordinating Minister for Economic Affairs Airlangga Hartarto, who is currently in Washington.
“We’ve achieved a trade balance of around US$15 billion on the energy side. We will wait for Pak Airlangga to conclude negotiations with the United States,” said Yuliot, during an oil and gas forum on Tuesday, as reported by Bloomberg Technoz.
Indonesia has proposed a series of concessions in the ongoing bilateral talks aimed at averting the tariff. However, analysts have warned that a comprehensive agreement may prove challenging to secure.
“The government will maximise all available opportunities to safeguard national interests,” said Haryo Limanseto, spokesperson for the Ministry of Energy and Mineral Resources.
-The Jakarta Post
