Garuda Indonesia Secures $405M Loan from Wealth Fund

Garuda Indonesia has secured a USD405 million shareholder loan from Indonesia’s sovereign wealth fund, Danantara (Daya Anagata Nusantara), according to a June 24, 2025, filing with the Indonesia Stock Exchange. The funding will provide USD295.3 million to subsidiary Citilink and USD109.7 million to support Garuda’s own recovery efforts.
The deal, under negotiation since early May, comes as Garuda continues to face financial and operational challenges despite a major 2022 restructuring that cut debt and downsized its fleet. Danantara manages the Indonesian government’s 64.5% stake in Garuda Indonesia Group.
In the filing, Garuda stated the loan is essential “to maintain the continuity” of operations. The airline has struggled with negative equity for three consecutive years and a backlog of aircraft maintenance that has grounded much of its fleet, severely impacting revenue. The airline noted it cannot cover non-operational costs, including lease payments and interest, due to grounded aircraft.
Data from ch-aviation shows 21 of Garuda’s 79 aircraft and 31 of Citilink’s 59 aircraft are currently out of service. Garuda CEO Wamildan Tsani Panjaitan said the loan is part of a broader long-term transformation plan, which includes a targeted 20% fleet growth over five years, focused on returning grounded aircraft to service.
Danantara COO Dony Oskaria said the fund will closely monitor the recovery, implementing performance-based evaluations to ensure accountability. Both companies described the partnership as a critical step toward restoring Garuda Indonesia’s operational readiness and financial health.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com