Jakarta (ANTARA) - Sovereign wealth fund Danantara Indonesia through its subsidiary Danantara Asset Management has extended a shareholder loan of US$405 million to national flag carrier Garuda Indonesia.
Danantara Chief Operating Officer Dony Oskaria said the loan reflects a new approach to restructuring and transforming state-run companies under Danantara's management.
“This funding reflects our mandate for transformation, carried out professionally with a measurable approach and a strong emphasis on good governance,” Oskaria said at a press conference on Tuesday.
The loan will be used to support Garuda’s aircraft maintenance, repair, and inspection operations. The broader support package includes business optimization, long-term financing, and governance-based performance restructuring.
Danantara will monitor each phase of the transformation plan through regular evaluations based on clear targets and accountability.
According to Oskaria, the initiative aims to ensure the continuity and quality of services provided by both Garuda and its low-cost subsidiary Citilink, while laying the foundation for a sustainable long-term transformation.
In the initial phase, the collaboration will focus on improving the operational readiness of both airlines’ fleets. Additional financing will help optimize both operational and financial performance to support Garuda’s evolution into a sustainable carrier.
Garuda Indonesia CEO Wamildan Tsani called the cooperation a major milestone in the airline’s recovery.
He emphasized that Danantara’s support would enhance the airline’s operational capacity and performance, thereby reinforcing its market position.
“We believe that successful recovery depends not only on financial support but also on our internal commitment and external collaboration to reorganize our business and operational strategies,” Tsani said.
