Boeing Says Indonesia Needs 600 New Aircraft to Reach 7% Economic Growth
Key Takeaways
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JAKARTA, Investortrust.id — Boeing has said Indonesia requires about 600 new aircraft in the near term to expand its aviation sector and help the country achieve President Prabowo Subianto’s 7% economic growth target.
Dave Schulte, Managing Director Asia-Pacific Marketing at Boeing, explained that long-term growth in Southeast Asia would be driven by three main factors: economic expansion, passenger traffic, and fleet additions.
He noted that the regional economy was expected to grow more than 5% annually, while passenger traffic could rise 7% per year over the next 20 years, among the fastest rates in the world.
Also, fleet growth in Southeast Asia is projected to exceed 6.5% annually over the next two decades, Schulte said during a press conference at Boeing’s Jakarta office in Menara Astra on Wednesday, Aug. 27, 2025.
Fleet Gap and Indonesia’s Needs
Schulte pointed out that Indonesia’s current seat capacity stood at only 0.4 seats per capita, well below the Southeast Asian average of 0.65. Thailand had 1.18 seats per capita, Vietnam matched the regional average, while Singapore stood far higher at nearly 7 seats per capita.
Based on the demographics and figures, if Indonesia can raise seat capacity to the regional average, the country would require roughly 600 new aircraft in the short term, he said.
Danantara Moves on Garuda and Boeing Deal
Separately, Indonesia’s sovereign wealth manager Badan Pengelola Investasi (BPI) Danantara has been continuing discussions with Boeing regarding 50 aircraft initially contracted with flag carrier PT Garuda Indonesia Tbk (GIAA) before the Covid-19 pandemic.
Rosan Perkasa Roeslani, Chief Executive Officer of Danantara, said Boeing had so far delivered only one unit from that order, with the rest expected between 2031 and 2032.
To maintain operations, Danantara has injected more than $400 million into Garuda Indonesia. “The funds will be used for maintenance and optimization of grounded aircraft belonging to Garuda and Citilink. Many of these planes are still under leasing agreements but cannot operate. We want them restored to service,” Rosan said recently.
The plan to expand Boeing orders has also resurfaced in Indonesia–United States trade talks, as Jakarta seeks to persuade President Donald Trump’s administration to lower reciprocal tariffs from 32% to 19%. Although Garuda already holds a purchase agreement, Rosan signaled the possibility of additional Boeing aircraft in line with the sector’s long-term needs.
Foreign Tourist Arrivals Rise
Growth in tourism is also underpinning demand for air transport. The Central Statistics Agency (BPS) reported that foreign tourist arrivals reached 1.42 million in June 2025, up 8.42% from the previous month and 18.2% year on year.
This figure reflects a positive trend in foreign visits to Indonesia, said Pudji Ismartini, Deputy for Distribution and Services Statistics at BPS, during a press conference in Jakarta on Friday, Aug. 1, 2025.
From January to June 2025, cumulative arrivals stood at 7.05 million, an increase of 9.44% from 6.44 million in the same period last year.
Malaysian travelers accounted for the largest share at 16.7% of the total, or 236,400 visitors. Although arrivals from Malaysia dipped 0.87% month on month, they still rose 28.7% compared to a year earlier. Visitors from Singapore showed the strongest monthly momentum, climbing 43.38% in June and 16.97% year on year.
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