Making 2026 a Performance Turnaround Phase: Inside Garuda Indonesia's 11 Strategic Transformation Initiatives
Jakarta – PT Garuda Indonesia (Persero) Tbk (GIAA) is continuing to strengthen the foundation of its business transformation by targeting 2026 as the company’s performance turnaround phase. This is being pursued alongside the staged recovery of production capacity, reinforcement of the capital structure, and implementation of business and operational improvement initiatives aligned with various strategic transformation measures announced by the Garuda Indonesia Group.
In line with fundamental performance challenges in the 2025 financial year, Garuda Indonesia’s new management, appointed by Danantara at the end of Q4 2025, is projecting several performance transformation priorities to be accelerated throughout the 2026 performance year.
Through strengthened management structure bolstered by new Chief Executive Officer Glenny Kairupan, Deputy Chief Executive Officer Thomas Oentoro, and a combination of internal talent and international professionals within the board of directors, Garuda Indonesia is accelerating fundamental performance improvements.
“Garuda Indonesia is projecting accelerated fundamental performance improvement steps comprising 11 transformation initiatives to drive more solid company performance optimisation throughout 2026,” Glenny stated on Tuesday, 17 March 2026.
With the support of shareholder loan funding and capital injection in 2025 provided by Danantara, the company achieved significant improvements in its equity position by end-year, returning to a positive position of US$91.9 million as of 31 December 2025, up from the previous year’s negative position of US$1.35 billion.
Shareholder loan support in mid-2025 and capital injection at year-end 2025, totalling approximately Rp23.7 trillion, were aimed at supporting accelerated fleet maintenance and reactivation programmes, as well as settling Citilink’s obligations to Pertamina. Of the total support, 64 per cent or approximately Rp15 trillion was allocated to Citilink, whilst Garuda Indonesia received a total allocation of Rp8.7 trillion for fleet maintenance requirements, which continues to be implemented and optimised through the end of 2026.
Under these conditions, Garuda Indonesia recorded cash and cash equivalents of US$943.4 million at end-2025, increasing significantly compared to the previous year’s position of US$219.1 million. This cash flow will be optimised to maximise the company’s fundamental operations going forward. Furthermore, this increase also reflects improvements in the company’s liquidity, which serves as an important foundation for maintaining operational stability and supporting the various business transformation steps currently being implemented.