Danantara affirms Garuda's performance beginning to improve in early 2026

Jakarta (ANTARA) - The Danantara Investment Management Agency has affirmed that improvements in the performance of PT Garuda Indonesia Tbk (GIAA) will begin to appear in early 2026, in line with the impact of the capital injection intervention carried out in the previous year.

Danantara’s Chief Operating Officer (COO) and Head of SOE Financial Management Dony Oskaria stated in Jakarta on Sunday that the performance pressures still reflected in the 2025 financial reports represent the situation before the intervention takes effect.

“That problem booked today is the 2025 revenue. The intervention we carried out is only at the end (of 2025). The performance will be seen in early 2026. We will release it in quarter 1 and quarter 2,” Dony said.

He explained that one of the main factors pressuring Garuda’s performance throughout 2025 was the high number of grounded aircraft, which still incurred costs, particularly from leasing. Another challenge was aircraft maintenance, repair, and overhaul (MRO), which required significant time.

“Before the intervention by Danantara, how many were grounded. Now, how many are flying. But it’s not yet 100 percent,” he clarified.

Nevertheless, Dony assured that signals of improvement are starting to appear in 2026. He noted that the performance of Garuda’s subsidiary, Citilink, has recorded positive results in the first quarter of 2026, serving as an initial indication of the Garuda Indonesia group’s recovery.

“We still have a lot of homework to do, which we continue to address. Because it’s not enough just to provide money. But also the transformation,” he emphasised.

Garuda Indonesia continues to face performance pressures, with a net loss of US$319.39 million recorded for the whole of 2025.

Previously, Garuda Indonesia’s President Director Glenny H. Kairupan affirmed that the additional capital of Rp23.67 trillion from PT Danantara Asset Management (DAM) serves as a crucial driver to strengthen the red-plate airline’s business transformation.

Of the total Rp23.67 trillion, approximately Rp8.7 trillion (37 percent) is allocated for working capital needs such as aircraft maintenance and service improvements. Meanwhile, Rp14.9 trillion (63 percent) is intended to bolster Citilink’s operations, including settling fuel obligations to Pertamina for the 2019–2021 period.