Indonesia ‘Looking At’ 50 Boeing Aircraft In Return For Lower Tariff Rate

President Donald Trump announced that the U.S. and Indonesia have agreed on a trade deal that includes the sale of 50 Boeing aircraft, in return for a lower tariff rate on the Republic of Indonesia. The president said the deal was made during talks with Indonesia’s President Prabowo Subianto.

President Trump wrote in a social media post, “This landmark deal opens up Indonesia’s entire market to the United States for the first time in history.”

The agreement is for Indonesia to buy $15 billion in U.S. energy, $4.5 billion in American agricultural products, and 50 Boeing aircraft that would include many 777 models, according to President Trump.

Trump also noted that Indonesia agreed to a 19% tariff on all exported goods to the U.S. with zero U.S. tariffs on exports to Indonesia.

The president added that if any goods are transshipped from a country paying a higher tariff, that tariff will be added to Indonesia’s tariff.

Indonesian President Subianto said the deal comes when Garuda Indonesia, the country’s national airline, needs to modernize its fleet with new aircraft.

Cahyadi Indrananto, Corporate Secretary Group Head for Garuda, confirmed that discussions with Boeing have been ongoing. He said, “This agreement is aligned with our long-term strategy to grow our fleet to 120 aircraft and expand our route network to 100 destinations over the next five years.”

Subianto said in an interview with local media, “I’m determined to grow Garuda. That’s why we need to acquire new planes. I don’t see any problem with it, we do need the planes. Boeing jets are pretty good, and we are still using Airbus planes. This is where our interests meet.”

Trump said the U.S. will have complete and total access to the Indonesian market of over 280 million people. “Thank you to the people of Indonesia for your friendship and commitment to balancing our trade deficit,” Trump concluded.

FMI:  www.garuda-indonesia.com/