Danantara Indonesia Supports Garuda Indonesia's Transformation Towards A Healthy And World-class Airline
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Jakarta, 24 June 2025 – PT Danantara Asset Management (Persero) (“DAM”) as part of Badan Pengelola Investasi Daya Anagata Nusantara (“Danantara Indonesia”), together with PT Garuda Indonesia (Persero), Tbk. (“Garuda Indonesia”), officially announced an accelerated step in strategic portfolio management to support the comprehensive transformation of the national airline. This step is a continuation of the restructuring process that Garuda Indonesia implemented in 2022, while also marking the start of a new phase of Garuda Indonesia's transformation to become a healthy, competitive, and world-class airline.
This comprehensive transformation support includes business optimization, long-term funding, as well as comprehensive assistance based on governance and performance health restructuring. Through this collaboration, Danantara Indonesia will provide initial support in the form of a shareholder loan worth of IDR6,650,505,000,000 (or equivalent to USD405,000,000) to fund maintenance, repair, and overhaul (MRO) needs, which is part of a total funding support worth around USD 1 billion.
This is done to maintain the operational continuity and quality of Garuda Indonesia and Citilink services, along with the preparation of the foundation for long-term transformation by Danantara Indonesia and Garuda Indonesia Group, which is expected to have a positive impact on the recovery of Garuda Indonesia's performance, market confidence, and competitiveness as a whole—including through technology integration to drive operational efficiency and productivity.
The initial phase of this collaboration is focused on maintaining and improving the operational readiness of the Garuda Indonesia Group fleet, both for Garuda Indonesia as a full-service carrier (FSC) and Citilink as a low-cost carrier (LCC). Furthermore, the financing support will be followed by various steps that focus on optimizing operational and financial performance to support long-term business transformation into a sustainable airline.
Dony Oskaria, Chief Operating Officer (COO) of Danantara Indonesia, conveyed that this step is a manifestation of a new approach in the restructuring and transformation of the company under the management of Danantara Indonesia. "Garuda Indonesia is not just a business entity, but a symbol of air sovereignty and national pride. The distribution of these funds is a real form of the transformation mandate that we carry out, with a professional, measurable approach, and prioritizing the principles of good governance. We are not just providing funding, but we are present as shareholders with a clear mandate and institutional approach. Through Danantara Asset Management, we will ensure that the transformation process runs according to plan, and each stage will be evaluated periodically based on achievements and accountability," he said.
This comprehensive transformation with Danantara Indonesia marks the start of the next phase of Garuda Indonesia's transformation, which was previously carried out in 2021-2024 through fundamental operational and financial restructuring to ensure the company's business sustainability. Now, Garuda Indonesia, with strategic support from Danantara Indonesia, is entering a recovery phase that focuses on performance acceleration to strengthen competitiveness and optimize production equipment.
Wamildan Tsani, President Director of Garuda Indonesia, explained that this collaboration is an important milestone in the transformation process of Garuda Indonesia. He also explained, "With the support of Danantara Indonesia, Garuda Indonesia projects the strengthening of operational capabilities through business and performance optimization, so that it can strengthen Garuda Indonesia's position as a world-class airline." Wamildan continued, "We believe that the success of performance recovery does not only depend on financial support alone, but also on the company's commitment supported by various parties to reorganize operational and business strategies as a whole."
Dony Oskaria also said, "To become a world-class airline, Garuda Indonesia must be led by world-class talents. We are open to presenting leaders with international experience—because Garuda's success is a reflection of our courage to build professionally." Dony explained that the entire process of implementing this transformation plan will be supervised by an international standard governance system, accompanied by an Independent Financial Controller to oversee the use of funds and Aviation Industry Experts who provide technical expertise, conduct benchmarking with global industry standards, and ensure the implementation of best practices in Garuda Indonesia's transformation process.
This initiative is in line with the national strategy to strengthen domestic and international connectivity, support tourism growth, and strengthen Indonesia’s position as a regional aviation hub in Southeast Asia. This is also part of Danantara Indonesia’s contribution to achieving the vision of Indonesia Emas 2045, by encouraging inclusive and sustainable economic growth.
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About Danantara Indonesia
Danantara Indonesia, officially known as Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), is an Indonesian legal entity established under Law No. 1 of 2025 and fully owned by the Government of the Republic of Indonesia. The institution is mandated to enhance and optimize investments and operations of State-Owned Enterprises (SOEs) and other funding sources. With a commitment to best governance practices, inclusive impact, and global partnerships, Danantara Indonesia transforms national assets into long-term economic power.
About Danantara Asset Management
Danantara Asset Management (DAM) is an implementing unit under the Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara/Danantara Indonesia) which is responsible for managing state-owned strategic assets under the management of Danantara Indonesia. DAM carries out its mandate to create sustainable value through strengthening governance, optimizing national assets, and supporting economic growth with a disciplined, transparent, and professional approach. As part of the Danantara ecosystem, DAM focuses on transforming strategic portfolio entities, increasing long-term value, and strengthening corporate performance that contributes significantly to national development.
For more information, visit: www.danantaraindonesia.com
Media Contact:
Communications Team
Danantara Indonesia
media@danantaraindonesia.com
About Garuda Indonesia
Carrying out the mandate as the national flag carrier for more than seven decades, Garuda Indonesia committed to connecting the archipelago while carrying the nation's image to thr world stage. With a top-notch fleet and a distinctive service concept. that highlighting Indonesian hospitality, also as a part of SkyTeam Member, Garuda Indonesia now serves at least 37 exotic destinations in Indonesia and 15 attractive destinations worldwide.
Amid its ongoing transformation into a more agile, dynamic, and profitable company, Garuda Indonesia strives to undertake various initiative to cater to a broader range of interests, ranging from actively involved in humanitarian and environmental missions; collaborating with potential local brands; and maintaining synergistic cooperation with strategic partners to create more added value for society.
For more information, visit: https://garuda-indonesia.com
Media Contact:
Corporate Secretary
Garuda Indonesia
corpcomm@garuda-indonesia.com