Danantara Injects Rp 6.65 Trillion into Garuda Indonesia to Back Major Turnaround Plan

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JAKARTA, Investortrust.id – Indonesia’s sovereign wealth fund Danantara has disbursed Rp 6.65 trillion ($405 million) in shareholder loans to national carrier PT Garuda Indonesia Tbk (GIAA), marking the first phase of a broader Rp 16.4 trillion ($1 billion) transformation and restructuring agenda.

The funding was channeled through PT Danantara Asset Management (Persero), a state-owned fund management unit under the Investment Management Agency Daya Anagata Nusantara (BPI Danantara).

"This is not merely a capital injection—Garuda Indonesia is a symbol of national pride and air sovereignty," said Danantara Indonesia Chief Operating Officer Dony Oskaria in a written statement on Tuesday, June 24, 2025. “This funding represents our professional and accountable approach to restructuring, in line with good governance principles.”

Oskaria, who also serves as Deputy Minister for State-Owned Enterprises, emphasized that the initial funding will be allocated to maintenance, repair, and overhaul operations. These efforts are expected to boost the readiness of both Garuda Indonesia and its low-cost unit, Citilink.

He added that Danantara’s commitment includes not just financial support, but also long-term operational guidance. “We are laying the foundation for a sustainable business transformation,” he said, noting that Garuda’s progress would be periodically reviewed to ensure accountability and alignment with strategic targets.

Building a World-Class Airline

Oskaria underscored Danantara’s openness to bringing in internationally seasoned executives to lead Garuda Indonesia’s turnaround. “To become a world-class airline, we need world-class leadership,” he said.

According to Danantara, the initial phase of the collaboration is focused on restoring fleet reliability and operational readiness, covering both full-service carrier Garuda Indonesia and budget airline Citilink. Subsequent phases will target operational and financial optimization to ensure long-term sustainability.

Garuda Indonesia President Director Wamildan Tsani welcomed the partnership, calling it a pivotal moment in the company’s transformation journey.

“This collaboration enhances our operational capabilities and lays the groundwork for performance optimization,” Wamildan said. “Ultimately, successful restructuring will depend not only on financial support, but also on a company-wide commitment to redefine business and operational strategies.”