TEMPO.CO, Jakarta - President Director of PT Garuda Indonesia Tbk (GIAA), Wamildan Tsani, announced that the airline is exploring various funding options, specifically for the acquisition of 50 Boeing 777 aircraft. Currently, Garuda is utilizing a Rp6.65 trillion loan from the national sovereign wealth fund Danantara, supplemented by its internal funds.
Wamildan explained that this aircraft purchase aligns with the company's financial recovery plan, as detailed in its restructuring proposal. The allocation of funds for this purpose received approval from State-Owned Enterprises (SOE) Minister Erick Thohir and was sanctioned during an Extraordinary General Meeting of Shareholders on June 30, 2025.
"In addition, the company is concurrently communicating with several potential funders," he said in an information disclosure to the Indonesia Stock Exchange on Monday, July 21, 2025.
Regarding the progress of the aircraft acquisition, Wamildan noted that Garuda is engaged in intensive communication with Boeing. Discussions include detailed fleet requirements in line with market share.
"The company and Boeing are in intensive communication," he reiterated, emphasizing that the Boeing 777 purchase is integral to Garuda's long-term financial recovery strategy and business transformation, aiming to strengthen its fleet and optimize its flight network over the next five years.
Government Support and U.S. Tariff Negotiations
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that the negotiation process is still ongoing under a business-to-business (B2B) scheme between the two companies. He indicated that the aircraft purchase plan is expected to proceed more smoothly now that President Donald Trump has reduced import duties on Indonesian products to 19 percent.
"So, we will wait for further developments," Airlangga said after socializing the U.S. tariffs to business associations at his office in Jakarta on Monday, July 21, 2025.
The acquisition of Boeing aircraft is also a component of ongoing import duty negotiations with the United States. Airlangga mentioned that commercial agreements were already in place since the U.S. had previously imposed a reciprocal tariff of 32 percent on Indonesia.
Previously, Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, stated that while the aircraft purchase plan is part of the negotiations, Garuda Indonesia has not yet signed a Memorandum of Understanding (MoU) with the U.S. manufacturer.
"Garuda Indonesia hasn't signed [the deal] yet. What has been signed so far is for energy with agriculture, soybeans, wheat, and so on," Susi said as reported by Antara.
Ilona Esterina contributed to the writing of this report.
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