National flag carrier, Garuda Indonesia, will increase its planned Boeing aircraft purchase to 79 units in a strategic move linked to ongoing trade negotiations with the United States, according to State Owned Enterprises (SOEs) Minister Erick Thohir.

Erick confirmed the revised figure marks a significant increase from the previously proposed 50–75 units, as part of a new agreement with the U.S. aircraft manufacturer.

“This is based on a new agreement not the old one, which was voided under the debt restructuring process (PKPU). The number has now risen to 79 units,” Erick told reporters at the parliamentary complex in Jakarta on Tuesday, July 8, 2025.

The decision follows the recent announcement by U.S. President Donald Trump, imposing a 32 percent reciprocal import tariff on goods from Indonesia starting August 1, 2025. While the Ministry of SOEs has yet to receive a follow-up on negotiations from Indonesian trade representatives in Washington D.C., Erick noted that the ministry has been tasked with maintaining energy self-sufficiency and economic stability amid rising global trade tensions.

“In addition to overseas investments through (State investment management agency) BPI Danantara, we are focusing on critical sectors, including aviation, where we still face a supply gap,” he said.

Both Garuda Indonesia and State energy company Pertamina have been mobilized as part of Indonesia’s bargaining strategy in U.S. tariff negotiations. Pertamina is reportedly preparing to import American energy commodities, especially crude oil, to bolster bilateral trade volume.

“The total proposed import value from the U.S. is US$34 billion, with significant contributions from Pertamina and Garuda,” Erick said.

“We’re still waiting for final confirmation from the Coordinating Minister for the Economy,” he added.

Garuda Indonesia President Director Wamildan Tsani Pandjaitan had earlier announced the airline’s plan to acquire 50–75 Boeing aircraft as part of efforts to scale operations amid global economic uncertainty. The expanded fleet will include narrow-body Boeing 737s and wide-body Boeing 787 Dreamliners, with negotiations still ongoing.

The national carrier is also receiving financial support from Danantara, the newly formed sovereign investment agency, with around Rp 6.65 trillion allocated most of which will go to subsidiary Citilink Indonesia.

Garuda’s renewed Boeing deal and Pertamina’s U.S. crude purchases signal Indonesia’s intent to strengthen trade ties with Washington, even as tensions rise over protectionist tariffs.

Finance Minister Sri Mulyani Indrawati has confirmed that the government will coordinate a multi-ministerial response to the 32 percent import tariff imposed by the United States on all Indonesian products starting August 1, 2025.

Sri Mulyani said that the response will be formulated following discussions led by Coordinating Minister for the Economy Airlangga Hartarto, who is en route to Washington, D.C. for negotiations.

"The response will come from Coordinating Minister for the Economy. Let’s wait until Tuesday, when we will address it," Sri Mulyani said after attending a House of Representatives (DPR) plenary session on Tuesday, July 8, 2025.

Her remarks come after U.S. President Donald Trump formally announced the implementation of reciprocal tariffs on 14 countries, including Indonesia. The 32 percent tariff represents one of the highest rates among the targeted countries, signaling escalating trade tensions between Jakarta and Washington.

The Indonesian negotiation team, led by Airlangga, is expected to hold talks with U.S. officials to seek a possible revision or delay of the tariff measure. The government hopes diplomacy can prevent negative impacts on national exports and the broader economy.