PT Danantara Asset Management (Persero) (“DAM”), a subsidiary of the Sovereign Wealth Manager Daya Anagata Nusantara Investment Authority (“Danantara Indonesia”), has formally announced a strategic acceleration in joint portfolio management with PT Garuda Indonesia (Persero) Tbk. (“Garuda Indonesia”).

As part of this partnership, Danantara Indonesia will extend an initial shareholder loan worth Rp 6,650,505,000,000 or Rp 6.6 trillion (equivalent to USD 405 million) to support Garuda Indonesia.

This funding will be allocated to finance maintenance, repair, and overhaul (MRO) activities—forming part of a broader financial support package estimated at approximately USD 1 billion.

In addition to MRO funding, the capital injection aims to sustain operational continuity and maintain the service quality of both Garuda Indonesia and its low-cost subsidiary, Citilink.

This initial phase of collaboration centers on enhancing maintenance and boosting operational readiness of the Garuda Indonesia Group fleet, encompassing Garuda Indonesia as a full-service carrier (FSC) and Citilink as a low-cost carrier (LCC).

Following this financial support, a series of initiatives will be rolled out focusing on improving both operational and financial performance, in line with the airline’s long-term transformation towards becoming a sustainable aviation company.

Danantara’s Chief Operating Officer, Dony Oskaria, emphasized that this collaboration reflects a new approach to restructuring and transforming state-owned enterprises, under Danantara Indonesia’s leadership.

“Garuda Indonesia is more than just a commercial entity—it stands as a symbol of national air sovereignty and pride. This fund allocation signifies a concrete commitment to our transformation mandate, executed with professionalism, measurable strategies, and adherence to sound corporate governance principles,” Dony stated in Danantara’s press release received by Kompas.com on Tuesday (June 24, 2025).

“We’re not merely injecting capital; we are stepping in as institutional shareholders with a clear mandate. Through Danantara Asset Management, we will ensure that every stage of the transformation proceeds as planned, with progress being periodically evaluated based on outcomes and accountability,” he added.

Dony further noted that to transform Garuda Indonesia into a world-class airline, it must be led by world-class leadership talent.

Accordingly, Danantara is open to appointing executives with global experience.

He also explained that the entire implementation of this transformation will be supervised using internationally recognized governance systems. This includes oversight by an Independent Financial Controller to monitor fund usage, and guidance from Aviation Industry Experts who will offer technical expertise, conduct benchmarking against global standards, and ensure the adoption of best practices throughout Garuda Indonesia’s transformation journey.

Meanwhile, Garuda Indonesia’s CEO, Wamildan Tsani, emphasized that this collaboration marks a significant milestone in the airline’s transformation journey.

With Danantara’s support, he believes Garuda Indonesia will enhance its operational capabilities through business optimization and improved performance—helping secure its status as a world-class airline.

“We believe that restoring performance is not solely about financial support. It requires a strong commitment from the company, backed by various stakeholders, to comprehensively redesign our operational and business strategies,” he concluded.