December 2, 2025 | 03:04 pm
TEMPO.CO, Jakarta - Twenty Garuda Indonesia aircraft sat idle inside a hangar at Soekarno-Hatta International Airport in Tangerang, Banten, in October 2025. The state-owned airline was operating only 58 of the 78 planes under its management. Citilink, its subsidiary, was in a similar position, flying only half of the 64 aircraft it manages. Severe financial strain has sharply limited the company's ability to restore grounded planes.
But a new chapter for the state-owned carrier has finally arrived. A capital injection from the Daya Anagata Nusantara Investment Management Agency (Danantara) at the end of this year marks a turning point for the Garuda Indonesia Group. After years of financial pressure that constricted its operations, the arrival of new capital gives management room to restructure its business strategy. "We are evaluating and reviewing our plans for next year," said Thomas Oentoro, Deputy Chief Executive Officer of Garuda Indonesia, during a public briefing in Jakarta on Thursday, November 27, 2025.
Danantara is placing Rp23.67 trillion (around US$1.4 billion) into the airline with its signature blue livery through a private placement (PMTHMETD). The funds consist of Rp17.02 trillion (US$1.03 billion) in cash and Rp6.65 trillion (US$404 million) in shareholder debt converted into equity. This infusion is expected to reverse Garuda's equity position, which has been in negative territory since the Covid-19 pandemic. It also eases the cash pressures that have hampered the carrier's ability to restore aircraft and meet short-term obligations.
Yet by late 2025 the company's financial performance was still staggering. Third quarter financial report showed revenue had yet to recover and recorded a net loss of US$180 million. The heaviest drag came from Garuda's core business lines, namely scheduled and charter flights, which continue to incur operating losses.
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Allocation of funds from Danantara to Citilink is greater than to Garuda Indonesia due to several reasons. What are they?
