Danantara Claims Garuda's Performance Improving at Start of 2026
The Investment Management Body (BPI) Danantara has emphasised that improvements in the performance of PT Garuda Indonesia Tbk (GIAA) will become evident from the beginning of 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 Investment Management Dony Oskaria stated that the performance pressures still reflected in the 2025 financial reports represent conditions prior to the implementation of the intervention.
“That is the problem booked today, which is the 2025 revenue. The intervention we carried out was 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 in Jakarta on Sunday, 29 March 2026, as reported by Antara.
He explained that one of the main factors pressuring Garuda’s performance throughout 2025 was the high number of non-operational (grounded) aircraft, which still incurred costs, particularly from leasing. Another challenge was aircraft maintenance or 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 said.
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 emphasised that the additional capital of Rp23.67 trillion from PT Danantara Asset Management (DAM) serves as a crucial boost to strengthen the state-owned 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 strengthen Citilink’s operations, including the settlement of fuel obligations to Pertamina for the 2019–2021 period.