Danantara Indonesia Strengthens Direction of Garuda Indonesia's Restructuring and Transformation
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Jakarta, November 13, 2025 – Badan Pengelola Investasi Danantara ("Danantara Indonesia"), through PT Danantara Asset Management (Persero) ("Danantara Asset Management"), reaffirms its full support for the restructuring and transformation measures of PT Garuda Indonesia (Persero) Tbk. ("Garuda Indonesia"), in line with government policy direction to strengthen air connectivity and maintain sustainability of the national transportation industry. As the national flag carrier, Garuda Indonesia plays a crucial role in maintaining inter-regional connectivity, opening new economic access, and strengthening Indonesia's image on the global stage.
Through the Extraordinary General Meeting of Shareholders ("RUPSLB") decision on November 12, 2025, shareholders—namely Badan Pengaturan BUMN ("BP BUMN") and Danantara Indonesia—approved strategic measures to strengthen Garuda Indonesia's financial structure and ensure operational and business continuity of the company.
The decisions include conversion of shareholder loans into capital contributions to improve equity structure, as well as cash capital additions directed to support fleet maintenance programs for Garuda Indonesia and PT Citilink Indonesia ("Citilink"), Garuda Indonesia's subsidiary entity in the low-cost carrier segment. Support also includes settlement of Citilink's operational obligations to Pertamina arising during the pandemic period, ensuring service and operational continuity of both airlines can be optimally maintained.
All restructuring measures are part of the national policy to strengthen financial foundation and competitiveness of the aviation sector. Danantara Indonesia ensures that restructuring implementation is carried out without new fiscal burden to the state, by utilizing resources from optimization of strategic assets already under state management.
Dony Oskaria, Chief Operating Officer of Danantara Indonesia and Head of BP BUMN stated, "Garuda Indonesia's restructuring is a comprehensive restructuring involving renegotiation of obligations with foreign lessors, conversion of part of debt into capital, and placement of top talent from domestic and abroad to strengthen management capacity. For Danantara Indonesia, this recovery is not only about maintaining financial stability, but also ensuring inter-regional connectivity that supports economic activities and public mobility, as well as maintaining the sustainability of Indonesia's national flag carrier."
Dony added, "The entire restructuring and transformation process is carried out with a measured long-term approach based on strong governance. Our focus is to ensure every support creates sustainable value, both for the company and the national economy, so that Garuda Indonesia becomes stronger in carrying out its role as Indonesia's main connector to the world. The ongoing transformation covers service areas, business development and commercial operations, as well as technology modernization, whose implementation is directly under my coordination as Chief Operating Officer of Danantara Indonesia, so that all processes run consistently, integrated, and results-oriented."
Beyond restructuring, Garuda Indonesia's transformation stream is also directed to strengthen organizational capacity, increase productivity, and expand the company's revenue base. These efforts are carried out through strengthening operational systems and business governance, optimizing flight routes and networks, and accelerating digitalization in customer service and commercial management. Management structure changes were also made to strengthen leadership capacity, involving top talent from domestic and abroad to ensure transformation runs effectively and adapts to global challenges.
Garuda Indonesia's performance improvement is also reflected in plans to strengthen supporting entities, including PT Garuda Maintenance Facility Aero Asia Tbk. ("GMF AeroAsia"), which plays a role in aircraft maintenance and repair (Maintenance, Repair, and Overhaul / "MRO"). Through an integrated restructuring program, GMF AeroAsia will receive capital strengthening and sustainable business activity increases, along with increasing fleet maintenance service needs and optimization of synergy within the Garuda Indonesia group.
Garuda Indonesia's restructuring and transformation reflects a new direction in state strategic asset governance that balances economic efficiency with national responsibility. This step demonstrates how principles of professionalism, financial discipline, and sustainability can align with the vision of national economic independence. In line with the spirit of Asta Cita, this transformation agenda emphasizes the importance of just and sovereign structural reform, and ensures that strategic sectors can support long-term national growth.
As manager of state strategic assets, Danantara Indonesia is committed to carrying out every restructuring and transformation process with clean, value-based, and results-oriented governance. Every step is directed to create sustainable economic value, strengthen national industry, and maintain Indonesia's dignity amid global dynamics.
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About Danantara Indonesia
Danantara Indonesia, known as Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), is a strategic investment management body established through Law Number 1 of 2025. As an independent institution under the President, Danantara Indonesia has a mandate to manage and optimize government investments and state-owned enterprise assets to support achievement of the Asta Cita mission, national strategic plans, and government programs in accelerating industrialization and economic growth. With a professional, transparent, and accountable approach, Danantara Indonesia aims to strengthen state asset governance, create added value for the economy, and increase Indonesia's competitiveness in the global market.
For further information, please contact:
Communications Team
Danantara Indonesia
media@danantaraindonesia.com