November 8, 2025 | 05:05 pm
TEMPO.CO, Jakarta - Indonesia’s flag carrier PT Garuda Indonesia Tbk (GIAA) announced that the planned capital injection from the state-owned Investment Management Agency of Daya Anagata Nusantara (Danantara) has been reduced from Rp29.8 trillion to US$1.4 billion, or roughly Rp23.6 trillion.
The adjustment was confirmed by Danantara on October 29, 2025, regarding its Additional Capital Participation in Garuda.
Vice President Director Thomas Oentoro said the change automatically alters the company’s financial plans.
“There are also adjustments to the fund allocation plan, which no longer includes fleet expansion,” Thomas said in a disclosure to the Indonesia Stock Exchange (IDX) on Friday, November 7, 2025.
Thomas explained that 37 percent of the revised funding, about Rp8.7 trillion, will be allocated to Garuda Indonesia’s working capital, including aircraft maintenance and repair costs.
The remaining 63 percent, or Rp14.9 trillion, will be channeled to its low-cost subsidiary Citilink, with Rp11.2 trillion for working capital and Rp3.7 trillion to settle outstanding fuel purchase debts.
The additional capital is expected to be finalized at an Extraordinary General Meeting of Shareholders (EGMS) on Wednesday, November 12, 2025.
The capital injection aims to restore Garuda’s negative equity, which has hindered access to financing and raised concerns over potential delisting from the Indonesia Stock Exchange.
Garuda has been under financial strain due to rising aircraft maintenance and restoration costs, affecting both Garuda and Citilink’s performance.
According to the company’s latest financial report, Garuda Indonesia posted a net loss of US$180.7 million (Rp3 trillion) as of the third quarter of 2025, widening from US$129.6 million (Rp 2.1 trillion) in the same period last year.
Its operating revenue stood at US$2.3 billion (Rp38.3 trillion), down from Rp1.6 trillion year-on-year. Revenue sources included scheduled flights at US$1.8 billion (Rp29.9 trillion), charter services at US$299.5 million, and other income at US$245.8 million.
Meanwhile, operating expenses decreased slightly to US$2.2 billion from US$2.3 billion a year earlier. As of September 30, 2025, Garuda Indonesia reported total assets of US$6.7 billion, negative equity of US$1.5 billion, and liabilities amounting to US$8.2 billion.
Editor’s Choice: Danantara Injects US$1.4 Billion Capital into Garuda Indonesia
Click here to get the latest news updates from Tempo on Google News
Danantara Injects US$1.4 Billion Capital into Garuda Indonesia
19 menit lalu
The capital injection for Garuda Indonesia from Danantara was revised down from Rp 29.8 trillion to US$1.4 billion, or approximately Rp 23.6 trillion.
Danantara Indonesia to Invest Rp20 Trillion in Chicken Farms to Support the Free Meal Program
20 jam lalu
Indonesian Agriculture Minister is confident that chicken farming can strengthen the national supply of chicken and eggs and support the Free Nutritious Meal program (MBG).
Indonesia Targets 33 Waste-to-Energy Plants by 2027
4 hari lalu
Coordinating Minister Airlangga said that the Waste-to-Energy plants project's funding would utilize funds from Patriot Bonds issued by Danantara.
Danantara Predicts Waste-to-Energy Project Could Absorb 3,000 Workers
4 hari lalu
Danantara Indonesia says the waste to energy project is estimated to be able to absorb thousands of workers in a single project.
Danantara Indonesia Seeks Stake in Waste-to-Energy Project
4 hari lalu
Danantara determined that ownership considers the economic opportunities resulting from selling electrical energy from the waste processing project.
Danantara Proposes Jakarta Acquire Private Land for Waste to Energy Processing Site
5 hari lalu
The Jakarta Provincial Government faces challenges due to limited land availability for the Waste to Energy Processing (PSEL) site.
Danantara Indonesia Plans to Consolidate State-Owned Enterprises
7 hari lalu
Previously, Prabowo asked Danantara to reduce the number of state-owned enterprises from approximately 1,000 to between 200 and 240.
Danantara Indonesia Partners with South Korean Firms to Cut Plasma Imports
7 hari lalu
Danantara Indonesia and SK Plasma will improve PODP's local manufacturing and production capabilities.
Garuda Indonesia's Loss Swells to Rp3 Trillion by Q3 2025
7 hari lalu
Garuda Indonesia reported total business revenue of US$2.3 billion or Rp38.3 trillion, a decline from Rp41.6 trillion in the same period last year.
Luhut Claims Whoosh Can Now Cover Operating Costs
7 hari lalu
The National Economic Council Chair said the Jakarta-Bandung high-speed train or Whoosh has a significant economic impact on the region it serves.
