Danantara States Garuda Indonesia's Performance Begins to Improve in Early 2026
JAKARTA – The Danantara Investment Management Agency (BPI) has emphasised that improvements in the performance of PT Garuda Indonesia Tbk (GIAA) will become evident 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 and Asset Management Dony Oskaria stated in Jakarta on Sunday that the performance pressures still reflected in the 2025 financial reports represent conditions prior to the intervention taking effect.
“That problem recorded today is the 2025 revenue. The intervention we carried out is only at the end of 2025. The performance will be visible in early 2026. We will release it in the first and second quarters,” Dony said.
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 still not 100 percent,” he clarified.
Nevertheless, Dony assured that signals of improvement are beginning 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 continuously. Because it’s not enough just to give money, but also the transformation,” he stressed.
Garuda Indonesia continues to face performance pressures, with a net loss of US$319.39 million 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 business transformation of the red-plate airline.
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.