Indonesian investment agency Danantara will inject IDR 30 trillion into Garuda Indonesia through a private placement to help restructure its finances. The injection will be carried out by Danantara's subsidiary, Danantara Asset Management (DAM), with funding sources including a USD 1.441 billion cash injection and the conversion of a USD 405 million shareholder loan into new shares.
The funds will be used to improve the financial condition of Garuda Indonesia and its subsidiary Citilink, enhance liquidity and capital structure, and support future business development. Although Garuda Indonesia reduced its debt and improved equity after restructuring in 2022, it still faces multiple challenges, such as failure to secure second-round strategic investor financing, negative equity, rising aircraft maintenance costs, and slow operational traffic recovery.
As of June 30, 2025, Garuda Indonesia had negative net working capital, with total liabilities exceeding 80% of total assets, meeting the conditions for conducting a private placement of more than 10% of equity. Of the funds raised, 29% will be used for working capital and operations of Garuda Indonesia and Citilink, 37% for strengthening Citilink's capital, 22% for fleet expansion, and 12% for repaying Citilink's fuel debts to Pertamina incurred between 2019 and 2021.
After the transaction, the public shareholders' stake will be diluted from 27.46% to 5.03%. Danantara, as the majority shareholder of Garuda Indonesia, has committed to long-term support for its development, and this injection also demonstrates confidence in Garuda Indonesia's restructuring. Garuda Indonesia plans to hold an extraordinary general meeting of shareholders on November 12, 2025 to seek shareholder approval.
社会动态
Indonesian Government Injects IDR 30 Trillion into Garuda Indonesia for Financial Restructuring
Indonesian investment agency Danantara will inject IDR 30 trillion into Garuda Indonesia through a private placement to help restructure its finances. The injection will be carried out by Danantara's subsidiary, Danantara Asset Management (DAM), with funding sources including a USD 1.441 billion cash injection and the conversion of a USD 405 million shareholder loan into new shares.
The funds will be used to improve the financial condition of Garuda Indonesia and its subsidiary Citilink, enhance liquidity and capital structure, and support future business development. Although Garuda Indonesia reduced its debt and improved equity after restructuring in 2022, it still faces multiple challenges, such as failure to secure second-round strategic investor financing, negative equity, rising aircraft maintenance costs, and slow operational traffic recovery.
As of June 30, 2025, Garuda Indonesia had negative net working capital, with total liabilities exceeding 80% of total assets, meeting the conditions for conducting a private placement of more than 10% of equity. Of the funds raised, 29% will be used for working capital and operations of Garuda Indonesia and Citilink, 37% for strengthening Citilink's capital, 22% for fleet expansion, and 12% for repaying Citilink's fuel debts to Pertamina incurred between 2019 and 2021.
After the transaction, the public shareholders' stake will be diluted from 27.46% to 5.03%. Danantara, as the majority shareholder of Garuda Indonesia, has committed to long-term support for its development, and this injection also demonstrates confidence in Garuda Indonesia's restructuring. Garuda Indonesia plans to hold an extraordinary general meeting of shareholders on November 12, 2025 to seek shareholder approval.