Danantara Set to Inject Rp29.8 Trillion Capital into Garuda Indonesia

October 22, 2025 | 11:50 am

TEMPO.CO, Jakarta - Indonesia's flag carrier Garuda Indonesia has announced plans for an Extraordinary General Meeting of Shareholders scheduled for Wednesday, November 12, 2025. During the meeting, to be held at the Garuda Management Building in Soekarno-Hatta International Airport, Tangerang, shareholders will vote on a plan for the Nusantara Energy and Investment Management Agency (Danantara) to inject US$1.8 billion, or approximately Rp29.8 trillion, in new capital.

The announcement was made by the issuer, coded GIAA on the Indonesia Stock Exchange, on Tuesday, October 21, 2025. In the meeting, management also seeks approval to allocate 50 percent of the net wealth for the transfer and write-off of assets, including aircraft, unused aircraft, Low Value Assets (LVA), and Unit Load Devices (ULD). Additionally, management will seek approval for the company's long-term plan (RJPP) for Garuda Indonesia.

Prior to this, Garuda Indonesia had announced that Danantara, through PT Danantara Asset Management (Persero), would strengthen the company via a Non-Preemptive Rights Offering or private placement totaling US$1.8 billion (Rp29.8 trillion) at the EGM on November 12, 2025.

This capital injection is critical because Garuda is forecasted to not record positive equity until November 2025, which hinders access to funding and poses a potential threat of delisting from the Indonesia Stock Exchange. Garuda is also under financial pressure due to the maintenance and restoration of aircraft that have impacted the performance of both the main airline and its subsidiary, Citilink.

Out of the Rp29.8 trillion injection, Garuda Indonesia will allocate 29 percent for the maintenance and repair of aircraft, 37 percent for increasing Citilink's capital, 22 percent for the expansion of the Garuda and Citilink fleet, and 12 percent for repaying debts to PT Pertamina (Persero) for the purchase of avtur fuel.

Speaking to Tempo on Saturday, October 18, 2025, Corporate Secretary Group Head of Garuda Indonesia, Cahyadi Indrananto, expressed hope that this capital injection can improve the company's performance. "Garuda Indonesia is optimistic that this step can create a strong financial foundation by strengthening the capital structure, reducing liabilities, and enhancing the equity value of Garuda Indonesia Group," he said.

In June 2025, Danantara had also previously injected Rp6.65 trillion into Garuda Indonesia. Those funds were intended to finance the maintenance and repair of Garuda and Citilink aircraft, expand the fleets of both airlines, and reduce a portion of Citilink's debts. "These funds will be entirely used to support business sustainability and improve the financial position of Garuda Indonesia Group," he stated.

In the first half of 2025, Garuda Indonesia recorded a loss of US$142.8 million, or Rp2.3 trillion (assuming an exchange rate of Rp16,646 per US dollar). This loss is larger than the Rp1.6 trillion recorded in the same period last year.

GIAA's financial report, published on the Indonesia Stock Exchange on Tuesday, September 23, 2025, noted a decrease in total revenue from Rp26.6 trillion to Rp24.9 trillion during January–June 2025. This revenue came from scheduled flights (Rp19.9 trillion), unscheduled flights (Rp3.4 trillion), and other sources (Rp2.6 trillion).

Furthermore, Garuda Indonesia recorded liabilities of Rp133.2 trillion and equity of Rp23.3 billion. Total assets as of June 30, 2025, were noted at Rp108.2 trillion, down from Rp109.9 trillion for the same period last year.

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