Garuda Indonesia in Talks With Sovereign Wealth Fund Danantara

Garuda Indonesia is reportedly in early discussions with Indonesia’s sovereign wealth fund Danantara regarding a potential capital injection, according to a Bloomberg report. The talks aim to stabilize the airline’s financial position as it continues to face significant challenges despite completing a major debt restructuring in 2022.
The state-owned carrier is burdened with approximately USD1.4 billion more in debt than assets and is grappling with a large number of grounded aircraft. While Garuda posted profits in 2022 and 2023, it recorded a loss of IDR1.15 trillion (USD70 million) in 2024 and a further IDR1.2 trillion (USD73 million) loss in Q1 2025. Newly appointed CEO Wamildan Tsani Panjaitan has emphasized the need for operational and financial improvements across both Garuda and its low-cost unit, Citilink.
Danantara, officially known as Daya Anagata Nusantara Investment Management Agency, was launched earlier this year as Indonesia’s second sovereign wealth fund. Modeled after Malaysia’s Khazanah and Singapore’s Temasek, Danantara is expected to manage up to IDR320 trillion (USD19.5 billion) in assets.
Currently, Garuda operates a fleet of 84 aircraft serving 52 destinations across 12 countries. The fleet includes five A330-200s (four inactive), 21 A330-300s (nine inactive, six wet-leased), five A330-900Ns (two inactive), 45 Boeing 737-800s (four inactive), and eight Boeing 777-300ERs (one inactive). CEO Panjaitan has identified returning grounded aircraft to service as a key priority for the remainder of 2025.
While talks with Danantara are still preliminary, any agreement could provide a critical boost to Garuda’s turnaround efforts.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com