Danantara States Garuda Indonesia's Performance to Begin Improving in Early 2026 Following Capital Injection

Indonesia’s Investment Management Agency (BPI) Danantara has emphasised that improvements in the performance of PT Garuda Indonesia Tbk (GIAA) will become evident in early 2026, following the impact of interventions in the form of capital injections carried out at the end of 2025. Chief Operating Officer (COO) of Danantara and Head of SOE Holding Dony Oskaria stated that the performance pressures reflected in the 2025 financial reports represent the situation prior to the interventions taking full effect. “The problems recorded today pertain to 2025 revenues. The interventions we are undertaking are only at the end of the year. Their impact will start to be seen in the first and second quarters of 2026,” Dony said in Jakarta on Sunday (29/3). He explained that one of the main factors pressuring Garuda’s performance throughout 2025 was the high number of grounded aircraft, which continued to incur costs, particularly from leasing. Additionally, challenges arose from aircraft maintenance, repair, and overhaul (MRO) aspects that required significant time and expense. “Before the intervention, the number of grounded aircraft was quite substantial. Now it has started to decrease, and some have returned to operation, although not yet fully optimal,” he said. Despite still facing several challenges, Dony assured that recovery signals are beginning to appear in 2026. One indicator is the positive performance shown by Garuda’s subsidiary, Citilink, in the first quarter of 2026. According to him, this serves as an early indication that the transformation efforts are starting to yield results for the Garuda Indonesia group as a whole. “We still have much homework to do. Improvement cannot rely solely on capital injections but must be accompanied by comprehensive transformation,” he stressed. Meanwhile, Garuda Indonesia still recorded performance pressures throughout 2025, with a net loss of US$319.39 million. Previously, Garuda Indonesia’s President Director Glenny H. Kairupan stated that the additional capital of Rp23.67 trillion from PT Danantara Asset Management (DAM) serves as a crucial boost in strengthening the company’s business transformation. Of the total additional capital, approximately Rp8.7 trillion or 37 percent is allocated for working capital needs, including aircraft maintenance and service improvements. Meanwhile, Rp14.9 trillion or 63 percent is used to strengthen Citilink’s operations, including settling fuel payment obligations to Pertamina for the period 2019 to 2021. With these restructuring steps and funding support, Garuda Indonesia is expected to accelerate the recovery of its performance and enhance its competitiveness in the national and global aviation industry.