Ordered to buy aircraft, Garuda has reserves of Rp494 billion
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Diperintah beli pesawat, Garuda punya cadangan Rp494 miliar
6 December 2024
Jakarta, ID – State-owned Enterprises Minister Erick Thohir has instructed state-owned airlines, including PT Garuda Indonesia Tbk (GIAA), Citilink, and Pelita Air, to purchase more aircraft from the United States (US), such as those manufactured by Boeing. As of 30 September 2024, Garuda has a reserve of Rp494 billion designated for aircraft purchases.
Erick aims to purchase aircraft from Boeing because, following the Covid-19 pandemic, Indonesia has only 390 aircraft, which is below the mandated 700. "So, the solution is to cooperate with Boeing, Airbus, or Comac from China, or to purchase aircraft from Russia," he stated at a press conference at the State-owned Enterprises Ministry on Thursday (5/12/2024).
In the list of aircraft lessors, Erick tends to prioritise state-owned enterprise (SOE) airlines for purchasing aircraft from Boeing rather than from other lessors. The reason is that, in addition to balancing the trade balance with the US, the Soccer Association of Indonesia (PSSI) Chairperson believes that cooperating with Boeing can help connect the SOEs to the US market.
