Garuda Indonesia (GA, Jakarta Soekarno-Hatta) has secured a USD405 million shareholder loan from the Danantara (Daya Anagata Nusantara) sovereign wealth fund, according to a June 24, 2025, Indonesia Stock Exchange filing. The majority of the funds (USD295.3 million) will go to subsidiary Citilink (QG, Jakarta Soekarno-Hatta) and the remaining USD109.7 million will help overhaul Garuda Indonesia.

As previously reported by ch-aviation, loan negotiations have been underway since early May. The sovereign wealth fund controls the Indonesian government's 64.5% shareholding in Garuda Indonesia Group.

The filing says the funding was needed "in order to maintain the continuity" of the business, adding that despite Garuda's restructuring in 2022 that saw the airline's debt slashed and its fleet and network downsized, it has still faced "obstacles to recovery."

Those obstacles include recording negative equity for the past three years and a serious aircraft maintenance backlog rendering many aircraft unfit for flying. The number of out-of-service aircraft is impacting revenue so much that the company "cannot cover costs outside of operations, such as rental costs for grounded aircraft, interest costs, and others."

According to ch-aviation Commercial Aviation News, Operator & Airport Data, Garuda Indonesia has 21 of its 79 aircraft on the ground and Citilink has 31 of its 59 aircraft out of service.

Garuda CEO Wamildan Tsani Panjaitan told Jakarta-based journalists that the loan was part of a comprehensive transformation that included long-term financing. He reiterated plans to grow the fleet, albeit far more modestly than previous reports suggest. Wamildan says he wants to grow the group's fleet by 20% over five years. Much of the Danantara funding will go towards putting out-of-service aircraft back into the air.

"We are pleased to welcome Danantara as a strategic partner in our long-term transformation journey," he said. "This initial phase of collaboration focuses on maintenance and enhancing fleet readiness."

Danantara COO Dony Oskaria said the sovereign wealth fund would take a hands-on, institutional approach to fixing the mess at Garuda Group. "We’ll oversee every stage of the process with periodic evaluations based on clear performance indicators and accountability," he said.