Garuda’s US$1.4 billion capital boost marks transformation

Jakarta (ANTARA) – National airline carrier Garuda Indonesia affirmed that the Rp23.67 trillion or US$1.4 billion capital injection from sovereign wealth fund Danantara Asset Management (DAM) provides a significant boost to the flag carrier’s ongoing business transformation. In a statement released here on Friday, President Director Glenny H. Kairupan noted that the fresh capital reflects the government’s confidence in Garuda’s strategic direction toward sustainable recovery.Approved at an Extraordinary General Meeting of Shareholders (EGMS) held at the Garuda Indonesia Management Building on Wednesday (November 12), the injection marks a new chapter for the airline under Kairupan’s leadership, shifting its focus from recovery to growth and global competitiveness.“This capital participation represents confidence in our long-term vision to become a healthy, resilient, and world-class national airline,” he stated.The funds were channeled through a private placement mechanism, consisting of Rp17.02 trillion in cash and Rp6.65 trillion in debt conversion. Of the total Rp23.67 trillion, about Rp8.7 trillion, or 37 percent, is allocated for working capital requirements, including aircraft maintenance and service improvement.The remaining Rp14.9 trillion, or 63 percent, is designated to strengthen Garuda’s subsidiary Citilink’s operations, including the settlement of fuel obligations to state oil and gas firm Pertamina for the 2019-2021 period.Kairupan said the capital injection will reinforce Garuda’s financial structure and ensure the sustainability of its stock listing on the Indonesia Stock Exchange.He emphasized that stronger capital will help enhance operational reliability and fleet readiness.He added that Danantara’s support reflects solid collaboration between the government and management in accelerating Garuda’s recovery. Meanwhile, Danantara Chief Operating Officer (COO) Dony Oskaria said the investment amount had been adjusted based on Garuda’s needs, stressing that the priority is comprehensive restructuring rather than the nominal value.