Archer Seals $250M Indonesia Deal to Supercharge Global eVTOL Expansion

Archer Aviation (ACHR) is going from strength to strength, after signing a deal with Indonesian firm PT. Industri Ketahanan Nasional (PT. IKN) to bring its electric vertical takeoff and landing (eVTOL) aircraft, Midnight, to Indonesia. This makes Indonesia the third country included in Archer’s “Launch Edition” program, following earlier partnerships in the UAE and Ethiopia.

What Are the Specifics?

Under the agreement, PT. IKN plans to purchase up to 50 Midnight aircraft, a deal valued at up to $250 million. An initial fleet is expected to be deployed for air taxi services and other use cases, including military logistics, cargo delivery, and environmental surveillance. The companies also plan to support development projects tied to Indonesia’s new capital city, Ibu Kota Nusantara.

The partnership includes a pilot program worth up to $18 million. Archer will provide aircraft, a team of pilots, technicians, engineers, and supporting software and booking tools. Both companies will work closely with Indonesia’s Directorate General of Civil Aviation to build the necessary regulatory and infrastructure framework for launch.

Archer CEO Adam Goldstein described Indonesia as a high-potential market due to its large island network, growing tourism sector, and capital city development. He noted growing interest in the Launch Edition program globally and sees this agreement as a step toward scaling commercial eVTOL services in Southeast Asia.

The agreement with PT. IKN is currently non-binding and subject to final contracts. Aircraft orders are also conditional and depend on the execution of further definitive agreements. Archer estimates the aircraft value based on a $5 million per unit price.

Broader Strategy: Launch Edition as Global Expansion Blueprint

The deal with PT. IKN is part of Archer’s larger strategy to commercialize electric air mobility in early adopter markets ahead of full U.S. certification. Through its “Launch Edition” program, Archer is rolling out a playbook for global deployment of Midnight aircraft, starting with regions that can benefit most from eVTOL technology.

New markets, such as Indonesia, the UAE, and Ethiopia, offer geographic and infrastructural conditions well-suited to urban air mobility, including islands, congested roads, or remote access needs. Archer’s recent $850 million capital raise has strengthened its liquidity to approximately $2 billion, providing the company with the resources to expand aggressively and build infrastructure for new launches.

Archer is also integrating AI through partnerships with firms like Palantir (PLTR), aiming to boost flight operations and safety. With plans to produce at least 250 Midnight aircraft in 2025, the company is preparing for broader international demand as it scales both manufacturing and regulatory engagement.

Despite Archer’s growing partners and agreements, Main Street Data’s chart below highlights Archer’s deepening operating losses and modest revenue growth, reflecting the heavy investment phase tied to its global expansion strategy. As the company pushes into early adopter markets like Indonesia through its “Launch Edition” program, these losses underscore Archer’s focus on scaling infrastructure, production, and regulatory groundwork ahead of full commercialization.

Is Archer Aviation Stock a Good Buy?

Turning to the Street’s analysts, Archer boasts a Moderate Buy rating. The average ACHR stock price target is $11.75, implying a 13.20% upside.

See more ACHR analyst ratings