Indonesia had already initiated a tentative order for twenty-four jets in 2023 valued at $8 billion, but hasn’t been finalized in part due to budget constraints. This deal may be treated with greater importance to carry favor with the new Trump Administration in the United States.
President Donald Trump’s sweeping tariffs have sent the U.S. aerospace sector into a tailspin. European nations have been reconsidering the purchase of the Lockheed Martin F-35, while Canada may cancel its order for the fifth-generation stealth fighter.
This week, China began to return nearly completed Boeing-made jets in response to the massive tariffs imposed on the Asia nation, putting future orders in jeopardy. Yet another country in the region wants to purchase billions of dollars of U.S.-made military hardware.
Bloomberg first reported on Friday that Indonesia may seek to acquire fighter jets and ordnance to “ease trade strains” and even “ward off” the tariffs on the Maritime Southeast Asian nation. In a meeting with Defense Minister Sjafrie Sjamsoeddin and other officials, President Prabowo Subianto reportedly called for the weapons that could be imported or fast-tracked for purchase.
That included the Boeing F-15EX Eagle II, for which Jakarta had already initiated a tentative order for twenty-four jets in 2023.
The deal, valued at $8 billion, hasn’t been finalized in part due to budget constraints, while Subianto has been looking to institute cost-saving measures across the government. Jakarta already has an $8.1 billion contract with the French-based Dassault Aviation to purchase up to forty-two Rafale omnirole fighters as part of a 2022 deal.
It remains unclear if Indonesia can afford both aircraft orders, but if signing a deal for the F-15EXs could curb the tariffs, Jakarta may find a way forward.
On April 2, the U.S. White House announced that Indonesia would be subjected to a 32 percent tariff on Indonesian imports. This tariff is part of the Trump administration’s trade policy meant to address perceived imbalances, and it would impact textiles, footwear, machinery, and even rubber made or produced in the Asian nation.
The Trump administration hasn’t commented on such a plan. Still, the White House has repeatedly suggested it is willing to “make deals,” resolve trade imbalances, and address what the president has called “unfair” tariffs.
During the 2024 presidential campaign, Trump vowed to impose sweeping tariffs, alleging that nations worldwide have been somehow “ripping off” the United States.
Other Deals on the Table: Make the F-15EX in Indonesia!
Another option may be on the table, which calls for up to 85 percent of the F-15EX’s production to be completed in Indonesia.
The Jakarta Post also reported that the aerospace firm has been exploring whether such a deal could be concluded.
“Should Indonesia choose [to purchase] the F-15EX, Boeing will deliver on its 85 percent local content and offset commitments, aligned with national defense and industrial priorities,” Boeing Southeast Asia president Penny Burtt said in a media briefing.
It would call for the significant involvement of local industry in the jet’s supply chain, maintenance, and repair.
“We haven’t heard any specific requests from Indonesia,” Burtt added.
Such a deal would greatly benefit Indonesia, as it involves local industry. It would still involve production at Boeing’s St. Louis, Missouri, facilities, where the Eagle II is produced.
Still, even if full production were completed in the United States, it would mean more work for Boeing but not necessarily any new jobs being created.
About the Author: Peter Suciu
Peter Suciu is a Michigan-based writer. He has contributed to more than four dozen magazines, newspapers, and websites with over 3,200 published pieces over a twenty-year career in journalism. He regularly writes about military hardware, firearms history, cybersecurity, politics, and international affairs. Peter is also a Contributing Writer for Forbes and Clearance Jobs. You can follow him on Twitter: @PeterSuciu. You can email the author: [email protected].
Image: Wikimedia Commons/ Samuel King Jr..
