Danantara Injects IDR 6.65 Trillion For Garuda Indonesia-Citilink

JAKARTA - The Anagata Nusantara Power Investment Management Agency (BPI Danantara) announced that it will provide capital injections to Garuda Indonesia and Citilink Indonesia worth 405 million US dollars (US) or equivalent to Rp6.65 trillion.

The capital injection was given in the form of a shareholder loan.

The funds will be used to fund maintenance, repair and overhaul (MRO) needs, which are part of a total funding fund of around $1 billion.

This collaboration is a continuation of the restructuring process that has been carried out by Garuda Indonesia in 2022, as well as marking the start of a new phase of Garuda Indonesia's transformation to become a healthy, competitive, world-class airline.

Danantara's Chief Operating Officer (COO) and Deputy Minister of SOEs Dony Oskaria said the support was given for the comprehensive transformation process of the Garuda Indonesia group.

"As shareholders, we are obliged to do, see one by one the circumstances of our company, which we always see from its business potential, its impact on the economy. And with full confidence we carry out a comprehensive transformation process in Garuda Indonesia," Dony said at a press conference at Plaza Mandiri, Jakarta, Tuesday, June 24.

Meanwhile, the President Director of Garuda Indonesia, Wamildan Tsani Panjaitan, said this collaboration was an important milestone in the process of transforming Garuda Indonesia.

"With the support of Danantara Indonesia, Garuda Indonesia projects to strengthen operational capabilities through optimizing business and performance, so that it can strengthen Garuda Indonesia's position as a world-class airline," said the Military Commander.

The Regional Military Commander also said that this comprehensive transformation includes optimization of business, long-term funding, and comprehensive assistance based on governance and restructuring of performance restructuring.

Furthermore, the Military Commander said that through the assistance of the Danantara, Garuda Indonesia is targeting to operate 120 aircraft fleets for the next 5 years.

"The expansion step is designed to strengthen the position of the ship's maser as the main player in air transportation," said the Military Commander.

Separately, Garuda Indonesia's Director of Finance and Risk Management, Prasetio explained that the capital from the Antara will be prioritized for the restoration of the Garuda Indonesia subsidiary aircraft, namely Citilink.

The majority of the first stage is for Citilink, for restoration of approximately 15 aircraft. If we (Garuda Indonesia) 10 aircraft for maintenance," said Prasetio.

Prasetio said, of the 405 million US dollars, 111 million US dollars were allocated to Citilink Indonesia, and the remaining 294 million US dollars for Garuda Indonesia.

"So it is divided into two, 111 for Garuda, the remaining 290 million for Citilink," he said.