Jakarta. National flag carrier Garuda Indonesia is in talks with Boeing to acquire 50 aircraft as part of a US-Indonesia tariff agreement aimed at boosting Indonesian imports from the United States, a senior government official said.

“The aircraft procurement is currently under business-to-business negotiations between Boeing and Garuda,” Chief Economic Affairs Minister Airlangga Hartarto told reporters at his office in Jakarta on Monday.

The planned aircraft deal is linked to Indonesia’s commitment to increase imports from the US following a new tariff agreement that lowered duties on Indonesian goods to 19 percent from a planned 32 percent. 

“We will wait for further technical developments,” Airlangga said regarding the timeline for Garuda’s planned purchase.

The agreement was reached after the Indonesian government submitted a negotiation proposal pledging to ramp up imports of American goods, including energy commodities, agricultural products, and aircraft.

How Much Could the Garuda-Boeing Deal Cost?

Garuda Indonesia’s planned purchase of 50 Boeing aircraft could carry a price tag of $3 billion to $4 billion, industry estimates suggest, depending on the final aircraft mix and negotiated discounts.

Boeing 737 MAX jets typically list at around $121 million each, but airlines often secure discounts of 40–60 percent. If Garuda opts for mostly narrowbody 737 MAX aircraft at an average of $55–60 million each, the deal would land near the lower end of the estimate. Inclusion of any widebody jets, such as the Boeing 787 or 777, could push the deal closer to $5 billion.

Garuda plans to gradually increase its fleet to around 120 aircraft by 2030, up from about 100 currently, including its budget carrier Citilink, and to add at least 100 new routes by 2029.

The airline’s consolidated operating revenue rose 1.6 percent year-on-year to $723.56 million as of March 31, supported by higher passenger and cargo volumes. Garuda Indonesia Group carried a total of 5.12 million passengers in the quarter, including 2.64 million on Garuda Indonesia and 2.48 million on Citilink, with seat load factors improving to 78.8 percent, up five percentage points from the previous year.

Garuda also reported a significant improvement in cash flow, with net cash from operating activities rising 87.2 percent to $162.27 million. The airline narrowed its net loss by 12.5 percent to $75.93 million from $86.82 million a year earlier, although financial expenses of $124.57 million, largely tied to long-term restructuring commitments, continued to weigh on its bottom line.