Indonesian flag carrier Garuda Indonesia announced it is getting a USD $1.85 billion (~IDR 30.3 trillion) equity capital injection from its majority shareholder – sovereign wealth fund Danantara Indonesia.
Indonesian flag carrier Garuda Indonesia announced it is getting a USD $1.85 billion (~IDR 30.3 trillion) equity capital injection from its majority shareholder – sovereign wealth fund Danantara Indonesia.
In a disclosure statement, Garuda stated the asset management arm of Danantara Asset Management (Persero) will inject USD $1.44 billion (~IDR 23.85 trillion) in cash while USD $405 million (~IDR 6.7 billion) will be in the form of the wealth fund's loans converted into equity.
According to Garuda, the capital infusion follows the 2022 rescue efforts to improve the carrier's liquity, fleet management, and fleet expansion. The airline will also use it to pay off debt on fuel from state energey company Pertamina incurred between 2019 and 2021.
During the first half of 2025, Garuda Indonesia recorded a loss of USD $142.8 million (~IDR 2.3 trillion) – representing an increase in losses compared to the same period during the previous year (1H 2024 – IDR 1.6 trillion).
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