Indonesia’s sovereign wealth fund Danantara, through its unit PT Danantara Asset Management (Persero) (DAM), has agreed to provide a $405-million shareholder loan to state carrier PT Garuda Indonesia Tbk, as part of a broader $1-billion funding commitment.
The loan marks a significant step in the transformation of Indonesia’s national airline, following its 2022 restructuring. It initiates a new phase aimed at making Garuda Indonesia a healthy, competitive, and world-class carrier.
The transformation package includes business optimisation, long-term financing, and performance-based restructuring grounded in sound governance. The loan will support maintenance, repair, and overhaul (MRO) activities, which are critical for ensuring the operational continuity and service quality of both Garuda and its low-cost subsidiary, Citilink.
The partnership’s initial phase focuses on maintaining and enhancing fleet readiness across the Garuda Group. Future funding will support initiatives aimed at improving operational and financial performance, with the broader goal of transforming Garuda into a sustainable and resilient airline.
Dony Oskaria, Chief Operating Officer of Danantara Indonesia, said the initiative marks a new approach to corporate restructuring. “Garuda is more than a business—it represents national pride. Our support reflects a transformation mandate rooted in professionalism and strong governance,” he said.
He emphasised that Danantara is not merely a financier, but an active shareholder with institutional oversight. “We will monitor each stage of the transformation and ensure accountability,” he added.
Building on Garuda’s 2021–24 restructuring, this phase centres on accelerating performance, boosting competitiveness, and optimising assets.
Garuda President Director Wamildan Tsani called the partnership a milestone in the airline’s transformation. “With Danantara’s support, we aim to enhance operations and reinforce our position as a world-class airline,” he said, noting that recovery requires not just funding but a complete strategic overhaul.
Previously, Danantara signed an agreement with the Indonesia Investment Authority (INA) to invest $800 million in a petrochemical project by PT Chandra Asri Pacific Tbk, focusing on chlor-alkali and ethylene dichloride (CA-EDC) production. Under DAM, Danantara is expected to support more state-owned enterprises (SOEs).
