Early 2026 to Be Turning Point for Garuda, Danantara: Performance Starting to Improve

JAKARTA – The Investment Management Agency (BPI) Danantara has stated that improvements in the performance of PT Garuda Indonesia Tbk (GIAA) will begin to appear in early 2026, in line with the impact of interventions in the form of capital injections carried out at the end of the previous year.

Danantara’s Chief Operating Officer (COO) and Head of SOE Investment Management Agency Dony Oskaria said that the pressures still reflected in the 2025 financial reports represent the condition before the intervention was implemented.

“The problems currently recorded are the performance for 2025. Meanwhile, the intervention we carried out only took effect at the end of the year. The impact will be seen in the first and second quarters of 2026,” Dony said in Jakarta on Sunday (29/3/2026), as quoted from Antara.

In addition, the aircraft maintenance process, or maintenance, repair, and overhaul (MRO), also requires a long time, thus limiting fleet optimisation.

“Before the intervention, the number of grounded aircraft was quite large. Now, some have returned to operation, although not fully yet,” he said.

Nevertheless, Dony emphasised 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, which serves as an initial indication of the group’s recovery.

Garuda Indonesia itself still recorded performance pressures with a net loss of US$319.39 million throughout 2025.

Previously, Garuda Indonesia’s President Director Glenny H. Kairupan stated that the additional capital of Rp 23.67 trillion from PT Danantara Asset Management (DAM) serves as a crucial boost in strengthening the company’s business transformation.

Meanwhile, Rp 14.9 trillion or 63 percent was used to strengthen Citilink’s operations, including the settlement of fuel obligations to Pertamina for the 2019–2021 period.