It is the first time Lion Air – the largest budget airline in Indonesia – has chosen Rolls-Royce engines.
Foreign Secretary Philip Hammond, who witnessed the agreement at Soekarno-Hatta International airport in Indonesia's capital, Jakarta, said: "This first ever purchase of Rolls Royce engines by Lion Air is further good news for British manufacturing and a testament to the quality of our engineers. Increasing British exports and trade is a key part of our long-term economic plan to support jobs and growth in the UK.
"Rolls Royce's Trent 700 engine is winning export orders around the globe. The UK's aerospace industry is the second largest in the world. The government and industry are investing £2 billion in this key sector to help secure contracts and jobs."
Rusdi Kirana, Lion Group's ceo, said: "We have been impressed with the Trent 700's performance record and, after a thorough evaluation of our options, the engine was the natural choice for this important fleet expansion."
Eric Schulz, president – civil large engines at Rolls-Royce, said: "We are delighted to welcome Lion Air, a fast-growing airline serving a dynamic market, to the Trent family of operators. This is further demonstration of the market's continued demand for both the A330ceo and the Trent 700, which delivers outstanding economics for operators."