Get Capital Injection, Glenny Kairupan Ensures Funds Are Right On Target

Garuda Indonesia (Photo: dock. Antara)

JAKARTA President Director of Garuda Indonesia, Glenny H. Kairupan, emphasized that additional capital of Rp. 23.67 trillion from PT Danaantara Asset Management (DAM) is an important milestone for accelerating the transformation of the state-owned airline. He said this capital investment reflects the government's trust in the strategic direction of Garuda towards a sustainable recovery.

"This capital participation is a form of confidence in our long-term vision to become a healthy, resilient and world-class national airline," Glenny said in a written statement received in Jakarta, Thursday, (13/11).

The additional capital was approved at the Extraordinary General Meeting of Shareholders (EGMS) which was held at the Garuda Indonesia Management Building, Tangerang, Wednesday (12/11). The funds were channeled through the Increase in Capital Without Pre-emptive Rights (PMTHMETD), consisting of a cash deposit of Rp17.02 trillion and a debt conversion of Rp6.65 trillion.

Of the total Rp23.67 trillion, around Rp8.7 trillion (37 percent) was allocated for working capital needs such as aircraft maintenance and service improvement, while Rp14.9 trillion (63 percent) was intended to strengthen Citilink's operations, including the payment of fuel obligations to Pertamina for the 2019-2021 period.

Glenny emphasized that this injection of funds will strengthen the capital structure and ensure the sustainability of Garuda's share listing on the Indonesia Stock Exchange. With stronger capital, we can strengthen operational reliability and improve fleet readiness to provide modern and reliable flight services," he said.

Meanwhile, the Chief Operating Officer (COO) of the Danantara Investment Management Agency (BPI), Dony Oskaria, explained that the nominal adjustment of investment was made after careful calculations according to Garuda's current needs. Currently what is needed is sufficient. So that we do additional capital of IDR 23.6 trillion," Dony said at a press conference at Garuda Center Operations, Tangerang, Banten, Thursday, November 13.

He emphasized that Danantara did not see the size of the number, but rather the comprehensive restructuring process in Garuda's body. "We focus on the consolidation and turnaround process so that Garuda can truly become a healthy company," he added.

Glenny assessed that Danantara's support is proof of the strong collaboration between the government and management in accelerating Garuda's recovery. "We believe the balance between short-term performance recovery and long-term business resilience is key to sustainable growth," he said.

Glenny is not new to the world of aviation. He graduated from the 1973 Army (Penerbad) and the 1975 '1976 School of Curug Pilots, an experience that shaped his discipline and sharp vision in leading the national aviation industry.

The meeting, which was attended by shareholders representing 75.88 percent of the total shares, became a new chapter for Garuda Indonesia under the leadership of Glenny Kairupan from the recovery phase to global growth and competitiveness.