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• Danantara Injects Capital Loan to Garuda Indonesia Worth USD 1 Billion Equivalent to 6 Trillion Rupiah
• Shareholder Loan Worth USD 1 Billion
• Operational Maintenance of Garuda Indonesia Fleet
• Danantara Supports Garuda Indonesia’s Transformation
• Becoming a World-class Airline
Danantara Injects Capital Loan to Garuda Indonesia Worth USD 1 Billion Equivalent to 6 Trillion Rupiah
PT DANANTARA Asset Management (Persero) (“DAM”) as part of the Daya Anagata Nusantara Investment Management Agency (“Danantara Indonesia”), together with PT Garuda Indonesia (Persero), Tbk. (“Garuda Indonesia”) officially announced an accelerated step in strategic portfolio management to support the comprehensive transformation of the national airline.
This step is a continuation of the restructuring process that Garuda Indonesia has carried out in 2022, while also marking the start of a new phase of Garuda Indonesia’s transformation to become a healthy, competitive, and world-class airline.
This comprehensive transformation support includes business optimization, long-term funding, as well as comprehensive mentoring based on governance and performance recovery restructuring.
Shareholder Loan Worth USD 1 Billion
Through this collaboration, Danantara Indonesia will provide initial support in the form of a shareholder loan worth IDR 6,650,505,000,000 (or equivalent to USD 405,000,000) to fund maintenance, repair and overhaul (MRO) needs, which is part of the total funding support worth around USD 1 billion.
This is done to maintain the operational continuity and service quality of Garuda Indonesia and Citilink, along with the preparation of the foundation for long-term transformation by Danantara Indonesia and Garuda Indonesia Group, which is expected to have a positive impact on the recovery of Garuda Indonesia’s performance, market confidence, and competitiveness as a whole—including through technology integration to drive operational efficiency and productivity.
Operational Maintenance of Garuda Indonesia Fleet
The initial phase of this collaboration is focused on the maintenance and improvement of operational readiness of the Garuda Indonesia Group fleet, both for Garuda Indonesia as a full service carrier (FSC) and Citilink as a low cost carrier (LCC).
Furthermore, the financing support will be followed by various steps that focus on optimizing operational and financial performance to support long-term business transformation into a sustainable airline.
Dony Oskaria, Chief Operating Officer (COO) of Danantara Indonesia, said that this step is a manifestation of a new approach in the restructuring and transformation of the company under the management of Danantara Indonesia.
Garuda Indonesia is not just a business entity, but a symbol of air sovereignty and national pride. The distribution of these funds is a real form of the transformation mandate that we carry out, with a professional, measurable approach, and prioritizing the principles of good governance.
“We are not just providing funding, but we are present as shareholders with a clear mandate and institutional approach. Through Danantara Asset Management, we will ensure that the transformation process runs according to plan and each stage will be evaluated periodically based on achievements and accountability,” he said.
This comprehensive transformation with Danantara Indonesia marks the beginning of the next phase of Garuda Indonesia’s transformation, which was previously carried out in 2021-2024 through fundamental operational and financial restructuring with the aim of ensuring the sustainability of the company’s business.
Danantara Supports Garuda Indonesia’s Transformation
Now, Garuda Indonesia, with strategic support from Danantara Indonesia, is entering a recovery phase that focuses on accelerating performance to strengthen competitiveness and optimize production equipment.
Wamildan Tsani, President Director of Garuda Indonesia, explained that this collaboration is an important milestone in Garuda Indonesia’s transformation process.
He also explained that with the support of Danantara Indonesia, Garuda Indonesia is projecting the strengthening of operational capabilities through business and performance optimization, so that it can strengthen Garuda Indonesia’s position as a world-class airline.
“We believe that the success of performance recovery does not only depend on financial support alone, but also on the company’s commitment supported by various parties to reorganize operational and business strategies as a whole,” said Wamildan.
Becoming a World-class Airline
Dony Oskaria also said that to become a world-class airline, Garuda Indonesia must be led by world-class talents. “We are open to presenting leaders with international experience—because Garuda’s success is a reflection of our courage to build professionally.”
Dony explained that the entire process of implementing this transformation plan will be supervised by an international standard governance system, accompanied by an Independent Financial Controller to oversee the use of funds and an Aviation Industry Expert who provides technical expertise, conducts benchmarking with global industry standards, and ensures the implementation of best practices in the Garuda Indonesia transformation process.
This initiative is in line with the national strategy to strengthen domestic and international connectivity, support tourism growth, and strengthen Indonesia’s position as a regional aviation hub in the Southeast Asia region.
This is also part of Danantara Indonesia’s contribution to achieving the vision of Indonesia Emas 2045, by encouraging inclusive and sustainable economic growth. ***
