Garuda Indonesia Seeks $500M from Danantara Wealth Fund

Garuda Indonesia Group is pursuing a USD 500 million investment from Indonesia’s sovereign wealth fund, Danantara (Daya Anagata Nusantara), according to Bloomberg. The group, which includes full-service carrier Garuda Indonesia and low-cost subsidiary Citilink, aims to secure the funding to restore grounded aircraft and stabilize operations.

In March, the Indonesian government transferred its 64.5% ownership in Garuda to a Danantara-controlled entity. Talks regarding financial support began in early May and have gained momentum following approval from Minister of State-Owned Enterprises Erick Thohir. The investment aligns with President Prabowo Subianto’s broader economic reform strategy to revitalize state-owned enterprises.

Sources told Bloomberg a deal could be finalized by June or July, with funds likely to be disbursed in two tranches. A portion of the capital is expected to be allocated to Citilink to return aircraft to service. Currently, 29 of Citilink’s 59 aircraft and 23 of Garuda Indonesia’s 79 aircraft are grounded, according to ch-aviation data.

Garuda CEO Wamildan Tsani Panjaitan, appointed by Subianto to lead the turnaround, emphasized that restoring operational capacity is a top priority. He noted that both Garuda and Citilink are facing financial strain and require urgent liquidity.

“We are optimistic that we can maximize efforts to improve performance and help align Garuda’s role as the nation’s flag carrier,” Wamildan said during the company’s annual general meeting on May 28.

The potential funding marks a crucial step in Garuda Indonesia Group’s recovery plan as it seeks to regain financial and operational stability.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com