TEMPO.CO, Jakarta - PT Danantara Asset Management (Persero) or DAM, a part of the Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia), is providing initial support to national flag-carrier PT Garuda Indonesia (Persero) Tbk. in the form of a shareholder loan totaling Rp6.65 trillion.
This initial fund injection is earmarked for maintenance, repair, and overhaul (MRO) needs, forming part of a larger funding support package worth approximately US$1 billion, or around Rp16.3 trillion, assuming an exchange rate of Rp16,328 per US dollar.
Dony Oskaria, Chief Operating Officer (COO) of Danantara Indonesia, stated that this step is a new approach in the company's restructuring and transformation under Danantara Indonesia's management. "Garuda Indonesia is not just a business entity, but a symbol of air sovereignty and national pride," Dony emphasized.
Dony explained that this fund disbursement is a tangible manifestation of their transformation mandate, executed with a professional, measured approach, and a strong focus on good governance principles. "We are not just providing funding, but we are present as shareholders with a clear mandate and an institutional approach," he said in a written statement on Tuesday, June 24, 2025.
Through Danantara Asset Management, Dony assures that the transformation process will be executed according to plan, with each stage periodically evaluated based on achievements and accountability. This announcement followed Danantara Indonesia and Garuda Indonesia's official declaration of an accelerated strategic portfolio management step aimed at supporting the national airline's comprehensive transformation.
This initiative builds upon Garuda Indonesia's restructuring process undertaken in 2022, while simultaneously marking the beginning of a new phase to establish Garuda Indonesia as a healthy, competitive, and world-class airline. The comprehensive transformation support encompasses business optimization, long-term funding, and robust backing grounded in good governance and performance health restructuring.
The goal is to maintain the operational continuity and service quality of both Garuda Indonesia and Citilink, alongside preparing a long-term transformation foundation for Danantara Indonesia and the Garuda Indonesia Group. The company anticipates this will positively impact performance recovery, market confidence, and Garuda Indonesia's overall competitiveness, including through technology integration to drive operational efficiency and productivity.
This initial phase of collaboration targets improving the maintenance and operational readiness of the Garuda Indonesia Group's fleet, covering both Garuda Indonesia as a full-service carrier (FSC) and Citilink as a low-cost carrier (LCC). Subsequently, this financing support will be complemented by various measures focused on optimizing operational and financial performance to foster a sustainable airline business.
Furthermore, Dony stressed that to become a world-class airline, Garuda Indonesia must be led by world-class talent. "We are open to bringing in experienced international leaders—because the success of Garuda reflects our courage to build professionally," he asserted.
Dony also guaranteed that the entire implementation process of this transformation plan will be supervised by international standard governance systems. Additionally, the transformation plan includes an Independent Financial Controller to oversee fund usage and an Aviation Industry Expert to provide technical expertise, benchmark against global industry standards, and ensure best practices in Garuda Indonesia's transformation process.
"This initiative aligns with the national strategy to strengthen domestic and international connectivity, support tourism growth, and solidify Indonesia's position as a regional aviation center in the Southeast Asia region," Dony concluded.
This comprehensive transformation with Danantara Indonesia signifies the beginning of an advanced phase of Garuda Indonesia's evolution. Its previous fundamental operational and financial restructuring in 2021-2024 aimed to ensure business continuity. Now, with strategic support from Danantara Indonesia, Garuda Indonesia is entering a "health phase" focused on performance acceleration to strengthen competitiveness and optimize its production assets.
Wamildan Tsani, President Director of Garuda Indonesia, described this collaboration as a significant milestone in Garuda Indonesia's transformation process. "With Danantara Indonesia's support, Garuda Indonesia projects to strengthen operational capabilities through business and performance optimization, in order to consolidate Garuda Indonesia's position as a world-class airline," Wamildan said.
According to Wamildan, successful performance recovery relies not only on financial support but also on the company's commitment, backed by various parties, to comprehensively reorganize operational and business strategies.
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