Indonesia's sovereign wealth fund Danantara, through its subsidiary Danantara Asset Management, has extended a shareholder loan of US$405 million (Rp 6.65 trillion) to national flag carrier Garuda Indonesia to support the cash-strapped airline's financial turnaround and operational recovery.
Garuda CEO Wamildan Tsani Panjaitan announced the funding will help the distressed flag carrier stabilize finances and expand its fleet in the coming years, marking a critical intervention by the state-backed investment fund to rescue Indonesia's premier airline.
Danantara Chief Operating Officer Dony Oskaria stated the loan reflects the sovereign wealth fund's commitment to supporting strategic national assets, with the financing being part of a broader restructuring effort for the airline that has faced significant financial challenges.
The majority of funds, totaling US$295.3 million, will be allocated to subsidiary Citilink, while the remaining amount will support maintenance, repair, and overhaul (MRO) activities critical for ensuring operational continuity and service quality across both Garuda and Citilink operations.
This US$408 million loan represents part of a larger US$1 billion financing package designed to comprehensively address Garuda Indonesia's liquidity issues and position the airline for sustainable growth in Indonesia's competitive aviation market, backed by billionaire Chairul Tanjung's involvement in the airline's governance structure.
