Garuda Indonesia (GA, Jakarta Soekarno-Hatta) is in talks with Indonesian sovereign wealth fund Danantara about a capital injection, according to Bloomberg. Despite concluding a debt restructuring process in late 2022, state-owned Garuda is struggling with grounded aircraft and a balance sheet revealing it has about USD1.4 billion more in debt than assets.
The news outlet notes that talks are in the early stages and may not result in a deal. Initial discussions are reportedly focusing on how much cash Garuda Indonesia needs to shore up its balance sheet. After recording a profit in 2022 and 2023, Garuda posted an IDR1.15 trillion rupiah (USD70 million) loss in calendar 2024. That was more recently surpassed by a first quarter 2025 loss of IDR1.2 trillion (USD73 million). Garuda's new CEO, Wamildan Tsani Panjaitan, has acknowledged that things need to change at Garuda and its low-cost subsidiary Citilink.
Danantara, formally known as Daya Anagata Nusantara Investment Management Agency, is Indonesia's second sovereign wealth fund. It was established earlier this year and hopes to replicate the successful Malaysian Khazanah and Singaporean Temasek sovereign wealth funds. In its early stage, Danantara is projected to have funding of around IDR320 trillion (USD19.5 billion).
Garuda Indonesia operates a fleet of 84 aircraft to 52 airports in 12 countries. Its aircraft include five (four inactive) A330-200s, twenty-one (nine inactive, six wet-leased) A330-300s, five (two inactive) A330-900Ns, forty-five (four inactive) B737-800s, and eight (one inactive) B777-300ERs. Returning many of these inactive aircraft to service this year are among Panjaitan's stated goals.
