Prabowo Targets Garuda Indonesia to Start Profiting in 2027

Indonesian President Prabowo Subianto (Photo: Antara)

JAKARTA - President Prabowo Subianto targets PT Garuda Indonesia (Persero) Tbk (GIAA) to start recording profits in early 2027 after a massive overhaul was carried out on the red plate airline.

Prabowo said the target was supported by the reactivation of Garuda aircraft which was still being carried out by the government. Until June 2026, the number of aircraft that had been successfully reactivated had increased by 20 units, bringing the total number of aircraft in operation to 140 aircraft.

According to Prabowo, the reactivation of the aircraft gives hope for Garuda Indonesia to improve its performance after several years of losses.

"Garuda Indonesia which has been losing for years, now has hope to return to profit. If yesterday there was no war in the Middle East, in fact, this July Indonesia has already profited," said Prabowo in the Annual Meeting of the Indonesian People's Consultative Assembly and the joint session of the Indonesian House of Representatives and the Indonesian DPD RI in 2026, Friday, August 14.

However, the government remains optimistic about the prospects for the recovery of Garuda Indonesia's performance. Prabowo hopes that the red plate airline has started to record profits by early 2027.

"We now hope that in early 2027 they will start to make a profit," concluded Prabowo.

Garuda Indonesia is Ready to Become a State-Owned Airline Holding Company

Previously it was reported that Danantara Indonesia together with BP BUMN prepared Garuda Indonesia to become a BUMN airline holding as part of the consolidation of the national aviation industry.

In this scheme, Pelita will join the Garuda Indonesia Group to strengthen the competitiveness of the red plate airline.

The plan was conveyed by the Head of the State-Owned Enterprise Management Agency (BP) and Chief Operating Officer (COO) of Danantara Indonesia Dony Oskaria when he met with the Pelita board of directors on Thursday, July 23. The meeting discussed the direction of strengthening the national airline holding through the integration of Garuda Indonesia and Pelita.

Dony said Garuda Indonesia would become a state-owned airline holding company, while Pelita would be part of the Garuda Group. According to him, the consolidation will make the company have a stronger ability to compete in the aviation industry.

"Garuda Indonesia will later become our airline holding. Pelita will become part of Garuda Indonesia. With this consolidation, these companies will have a stronger ability to compete and dominate the market," said Dony in an official statement, Friday, July 24.

In addition to strengthening the corporate structure, Dony assessed that the aviation industry requires precise management because every operational decision has a direct impact on the company's performance. Therefore, analysis of flight routes and connectivity must be carried out continuously.

"The industry that requires accuracy, which must be managed day by day, minute by minute, is the aviation industry. Once the plane is flying, we can measure the profit or loss of one flight. Therefore, it is important to analyze each route and connectivity," he said.