Jakarta (ANTARA) - The agreement for Indonesia's flag carrier Garuda Indonesia to purchase 50 Boeing aircraft was established before the COVID-19 era, Chief Executive Officer (CEO) of the Danantara Indonesia Investment Management Agency, Rosan Roeslani, stated.

Speaking in Jakarta on Tuesday, Roeslani confirmed that the aircraft purchase is among the key terms outlined in the newly announced tariff-focused trade deal between the governments of Indonesia and the United States.

According to the agency CEO, Garuda Indonesia has so far received one unit out of the 50 airplanes agreed upon from Boeing.

"In this regard, Boeing has reached out to Garuda Indonesia and us (Danantara) to discuss ways to follow up on the deal because the delivery of new aircraft will be viable no sooner than the 2031–2032 period," Roeslani elaborated.

He also mentioned having urged the Garuda Indonesia management to optimize and make the most of the existing planes for the time being, noting that Danantara has lent around US$400 million to the airlines for fleet maintenance and upgrades.

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"This initiative is important because many aircraft operated by Garuda and Citilink (its subsidiary) have been grounded," he remarked. "Hence, we have pushed for repairing the planes so they can fly again," he added.

Roeslani, who concurrently serves as minister of investment and downstreaming, also emphasized the importance of Garuda Indonesia increasing the average daily flight hours of its aircraft.

"Garuda planes fly five hours on average daily, while the ideal figure is 12," he pointed out.

Furthermore, he noted that Danantara had urged the national airline to carry out transformation in technology, service, and other essential aspects.

"In principle, we respect the existing commitment to purchase 50 aircraft -- a deal that has been signed. However, we will try to pursue further negotiations for more favorable terms and conditions," he concluded.

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Translator: Aji C, Tegar Nurfitra
Editor: Primayanti
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