Garuda Indonesia Pockets IDR 23.7 Trillion From Danantara, Used For What?

Illustration. (Photo: Doc. Antara)

JAKARTA - PT Garuda Indonesia (Persero) Tbk received an injection of Rp23.7 trillion from the Danantara Investment Management Agency (BPI). This capital injection is a new ammunition for the state-owned airline to accelerate performance recovery after years of financial pressure.

Deputy President Director of Garuda Indonesia, Thomas Sugiarto Oentoro, explained that the funds came from two main sources, namely Shareholder Loan (SHL) amounting to US$405 million and cash capital participation of US$1 billion.

"This support is a turning point for Garuda Indonesia, which is currently focusing on accelerating the transformation of performance restructuring, towards a flight that can be competitive again in global competition," he said in a virtual RDP with Commission VI of the DPR, Monday, December 1.

Thomas said the funds would be directed at the most urgent needs, especially the maintenance of the fleet, which has been a huge burden on airline operations.

Of the total funds, continued Thomas, 47 percent or IDR 11.2 trillion was allocated for the repair and maintenance of Citilink aircraft, while 37 percent or IDR 8.7 trillion was used for the maintenance of the Garuda Indonesia fleet.

In addition, continued Thomas, 225 million US dollars was prepared to pay Citilink's obligations to Pertamina regarding the provision of fuel.

Thomas also said that with the support of shareholders, Garuda Indonesia has operated 58 aircraft and 32 Citilink aircraft, a total of 90 aircraft as of November 2025. This figure increased significantly from the position in July 2025, when Citilink only operated 21 units and Garuda 56 units.

On the other hand, Garuda Indonesia also encourages strategic partnerships, monetization of cargo, and increased sharp income as a pillar of supporting company growth.

Internally, we are also carrying out organizational reforms, digitizing our core processes, as well as initiatives to increase customer journey and governance, where we will monitor the company's costs even closer, and we ask all ranks to be more agile, efficient, and outcome-oriented," Thomas said.