Indonesia insisted that its domestic airlines stop buying Airbus SE planes, hitting back at the EU over its decision to impose import duties on biodiesel from Indonesian exporters.
Indonesian Trade Minister Enggartiasto Lukita asked airlines including PT. Lion Mentari Airlines to switch to Boeing Co. as a supplier, Bloomberg News reported.
Asked whether the government would instruct all the airlines to replace Airbus with Boeing, Lukita said the administration is "exploring all options," and Lion Air's co-founder has agreed to "follow whatever the government decides."
The move comes after the EU imposed import duties of 8% to 18% on palm biodiesel from Indonesia in protest of government subsidies for its production. Lukita had threatened to impose 20% to 25% in tariffs on dairy imports from the EU in retaliation.
Lion Air ordered eight Airbus A330neo aircraft in 2018 worth $2.4 billion at list prices after buying 234 planes worth $24 billion in 2013, Bloomberg reported.
