Garuda Indonesia has inked a firm order for 11 Airbus A330-300 aircraft at a list price of $2.54 billion.
The aircraft, to be powered by Rolls-Royce Trent 700 engines, are expected to be delivered between 2013 and 2017.
The carrier will operate the aircraft in a two-class configuration on services from Jakarta and Denpasar to destinations in Asia, the Middle East and the Pacific, says Airbus.
The order, Garuda's third for the A330 since 2010, is in line with the Indonesian flag carrier's plans to grow its fleet to 194 aircraft by 2015.
The fleet, which will include Boeing 737-800s, Boeing 777-300ERs, Airbus A330s and A320s - to be operated by low-cost arm Citilink - will have an average age of five years.
"The A330 has proven to be a key element in the success of the revitalised Garuda Indonesia. The low seat mile cost and high passenger appeal make the aircraft a perfect fit for our fleet and a firm favourite with our passengers," says Garuda president and chief executive Emirsyah Satar.
UK prime minister David Cameron, who is in Indonesia as part of a trade tour of Southeast Asia, was a witness at the signing ceremony, together with Indonesian president Susilo Bambang Yudhoyono.
At a press conference in Singapore earlier this week, Satar said the carrier's A330s will be put on routes to China, Japan, South Korea and Australia.
This year, Garuda will take delivery of 21 aircraft - four Boeing 737-800s, two A330-300s, 10 A320s and five Bombardier CRJ1000 regional jets, expanding its fleet from 87 to 105, after retiring three aircraft.
The carrier has six A330-300s and eight A330-200s in operation.
In 2010, Garuda inked an agreement with Airbus for 10 A330-200s and in 2011, for 50 A320s for Citilink.
For the full year of 2011, Garuda posted a 56% rise in its net income to Rp808.7 billion ($88 million) from Rp518.2 billion in 2010.