Danantara Provides Evidence of Improving Business Performance for Garuda Indonesia

Jakarta – The performance of PT Garuda Indonesia Tbk (GIAA) is starting to show improvement 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 the Ministry of State-Owned Enterprises Agency, Dony Oskaria, stated that the performance pressures still reflected in the 2025 financial reports represent the situation before the intervention took effect.

“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 visible in early 2026. We will release it in quarter 1 and quarter 2,” Dony said in Jakarta, quoted on Monday, 30 March 2026.

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 a lot of time.

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

Nevertheless, Dony assured that signals of improvement are beginning to appear in 2026. He mentioned 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 give money. But also the transformation,” he emphasised.

Meanwhile, Garuda Indonesia is still facing performance pressures, with a net loss recorded at US$319.39 million throughout 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 an important boost to strengthen the state-owned airline’s business transformation.

From 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 settling fuel obligations to Pertamina for the 2019–2021 period.