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Indonesia to Buy 50 Boeing in a Deal to Avoid Trump 32% Tariffs

by Raidi
2025-07-22
in Economic
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Trump Tariffs

Boeing 777 (Doc Boeing)

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Jakarta, Indonesia Sentinel — Indonesia has agreed to purchase 50 Boeing aircraft from the United States as part of a broader trade deal aimed at avoiding steep reciprocal tariffs imposed by President Donald Trump.

The agreement follows Trump’s threat to slap a 32% import tariff on Indonesian goods. That figure was later lowered to 19% after Indonesian President Prabowo Subianto engaged in direct negotiations with Trump.

“They [Indonesia] will pay 19%, and we [the U.S.] will pay nothing,” Trump said on Wednesday (July 16), as quoted by Reuters.

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As part of the negotiated settlement, Indonesia committed to importing a range of American goods, including agricultural and energy products. The most high-profile aspect of the deal is the purchase of 50 Boeing aircraft, including several of the wide-body Boeing 777 model.

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“As part of the agreement, Indonesia has committed to buying 50 Boeing jets, many of them 777s,” Trump posted on his Truth Social platform, according to AFP.

The Boeing 777 is one of the world’s most widely used long-haul aircraft, known for its fuel-efficient twin-engine design—the largest of its kind globally. The model holds ETOPS (Extended-range Twin-engine Operational Performance Standards) certification from the U.S. Federal Aviation Administration (FAA), allowing it to safely operate long-distance flights over open water.

The 777 is also equipped with advanced avionics systems that enhance both safety and operational efficiency for flight crews. Its wide-body configuration allows airlines to customize seating layouts to optimize passenger capacity and comfort on long-haul routes.

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Trump Announces 19% Tariff on Indonesian Imports, While U.S. Gains Full Access to Indonesian Resource

Despite its technical advantages, the Boeing 777 comes with a hefty price tag. According to EMAirplane, a single unit costs between $330 million and $425 million, or roughly IDR 5.4 trillion to IDR 7.3 trillion. However, actual purchase prices for airlines can be significantly lower due to negotiated discounts. Pre-owned 777s, depending on their age and condition, are available for $70 million to $90 million.

President Prabowo Subianto stated that the Boeing purchase aligns with national efforts to expand the fleet of Indonesia’s flag carrier, Garuda Indonesia.

“We need to grow Garuda. Garuda is our pride. It is our national flight carrier,” Prabowo said on Wednesday (July 16).

 

(Raidi/Agung)

Tags: AircraftBoeingDonald TrumpIndonesia newsUnited States
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