Garuda Indonesia Receives Strategic Capital Injection

Transformational Investment for Future Growth

PT Garuda Indonesia (Persero) Tbk has received a significant Rp 23.67 trillion capital injection from PT Danantara Asset Management (Persero) through a private placement mechanism ¹

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Source 4

https://finance.detik.com/bursa-dan-valas/d-8209196/bos-danantara-ungkap-alasan-suntik-garuda-rp-23-67-t

. This strategic investment is part of Garuda's comprehensive turnaround and transformation plan, aimed at restoring the airline's financial health and operational capacity.

Key Components of the Capital Injection

The capital infusion consists of Rp 17.02 trillion in cash and Rp 6.65 trillion through debt conversion ⁴

, demonstrating a comprehensive approach to strengthening Garuda's balance sheet. According to Garuda's CEO, Glenny Kairupan, this injection will strengthen the company's capital structure and enhance operational capabilities ⁴

Source 4

https://finance.detik.com/bursa-dan-valas/d-8209196/bos-danantara-ungkap-alasan-suntik-garuda-rp-23-67-t

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Business Transformation Initiatives

The capital injection is designed to support multiple critical areas:

1. Fleet recovery: Repairing grounded aircraft to increase operational capacity
2. Capacity expansion: Adding new aircraft to expand route networks
3. Business transformation: Accelerating strategic changes across Garuda Indonesia Group, including its subsidiary Citilink

Danantara's Chief Operating Officer, Dony Oskaria, expressed strong confidence in the transformation plan, stating that Garuda is expected to return to profitability by next year ²

. The decision to invest Rp 23.67 trillion was based on comprehensive analysis, despite Garuda's initial request for US$ 1.84 billion (approximately Rp 30.57 trillion) ³

Source 3

https://finance.detik.com/bursa-dan-valas/d-8209518/bos-danantara-pede-garuda-sehat-usai-disuntik-rp-23-67-t

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Strategic Implications

This capital injection represents a critical milestone in Garuda's recovery journey, marking a significant step towards financial sustainability. The investment will likely have positive implications for both Garuda's operational capacity and its market position in the Indonesian aviation sector.