Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Garuda Indonesia remains in business-to-business negotiations with Boeing to acquire 50 aircraft as part of Indonesia's commitment under the U.S.–Indonesia tariff agreement that reduced duties on Indonesian goods to 19 percent from a planned 32 percent.
The aircraft procurement deal is strategically linked to Indonesia's pledge to increase imports of American goods, including energy commodities, agricultural products, and aircraft, following successful trade negotiations between President Prabowo and U.S. President Donald Trump.
Industry estimates suggest the potential Boeing deal could cost between $3 billion to $4 billion, with Boeing 737 MAX jets typically listing at around $121 million each, though airlines often secure discounts of 40-60 percent, while inclusion of widebody aircraft like Boeing 777s could push the total closer to $5 billion.
As part of its fleet expansion strategy, Garuda Indonesia plans to gradually increase its total aircraft count to around 120 by 2030, up from approximately 100 currently including budget carrier Citilink, while adding at least 100 new routes by 2029 to support its recovery and growth objectives.
Airlangga emphasized that the negotiations remain at the business-to-business level with no final agreement reached yet, stating "we will wait for further technical developments" regarding the timeline for Garuda's planned aircraft purchase under this landmark trade arrangement.
