Indonesia's Danantara Studies Plan to Buy 50 Boeing Jets for Garuda
Indonesia’s sovereign wealth manager Danantara is studying financing options to acquire 50 Boeing aircraft for state-owned carrier PT Garuda Indonesia under a bilateral trade agreement with the United States, officials said in Jakarta on Thursday.
The plan, still under technical review, aims to strengthen Garuda’s fleet amid tight global aircraft supply. Delivery schedules, aircraft types, and funding structures remain under negotiation, Managing Director of Stakeholders Management Danantara Indonesia Rohan Hafas said.
“Technically, we are ready to buy 50 aircraft, but Boeing has not confirmed how many units it can deliver, whether 10, 20, or more,” Rohan said during an exclusive group interview at Danantara’s headquarters in Jakarta.
One key challenge is delivery time, which could stretch to seven years due to global production backlogs. Rohan said Indonesia is seeking faster alternatives but acknowledged similar delays are affecting airlines worldwide.
Funding may involve multiple schemes, including supplier credit and installment payments directly to Boeing.
“Sources of funds can vary, including supplier credit, allowing installment payments. All of this will depend on future negotiations,” Rohan said.
Danantara also signaled possible additional capital injections into Garuda to support fleet expansion. In mid-2025, PT Danantara Asset Management allocated Rp23.67 trillion to strengthen the airline’s capital structure.
Rohan said consolidation among domestic airlines remains under consideration to improve fleet efficiency, given prolonged aircraft delivery timelines and rising operational demands across domestic and regional routes.
The planned purchase follows a trade agreement signed last week between Indonesia and the United States titled Toward a New Golden Age for the U.S.-Indonesia Alliance, which includes reciprocal trade commitments.
Under the deal, Indonesia is required to procure US$13.5 billion worth of commercial aircraft and aviation-related goods and services from U.S. suppliers.
“In this reciprocal tariff agreement, several activities involve the Ministry of Investment and Danantara, including the planned purchase of 50 Boeing aircraft,” said Investment Minister and Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani in a virtual press conference from Washington, D.C., on Feb. 20.
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Translator: Muhammad Heriyanto, Martha Herlinawati Simanjuntak