State-owned investment management agency Daya Anagata Nusantara (BPI Danantara), through its subsidiary PT Danantara Asset Management, has extended a US$405 million (Rp6.65 trillion) shareholder loan to national flag carrier Garuda Indonesia, aimed at accelerating the airline's long-term transformation and performance recovery strategy.

Garuda Indonesia President Director Wamildan Tsani described the financing as a comprehensive support mechanism encompassing business optimization, long-term funding, and structured governance-based restructuring.

"We are pleased to welcome Danantara as a strategic partner in our long-term transformation journey, marked by this initial shareholder loan," Tsani told a press conference at Plaza Mandiri in Jakarta on Tuesday, June 24, 2025.

The US$405 million disbursement represents part of a broader US$1 billion funding commitment from Danantara to support critical aspects of the airline's turnaround, particularly in maintenance, repair and overhaul (MRO) operations. The funding will cover both Garuda Indonesia and its low-cost subsidiary Citilink, ensuring continuity in fleet readiness and service quality.

"This initial phase of collaboration focuses on maintenance and enhancing fleet readiness across the Garuda Indonesia Group both for Garuda as a full-service carrier and Citilink as a low-cost carrier," Tsani cited.

The move comes amid a sustained regional rebound in air traffic, especially in the Asia-Pacific region. Tsani cited projections indicating an average air traffic growth of 8 percent over the next four years in Indonesia, positioning the national carrier to scale its fleet to around 120 aircraft by 2030.

"This growth underpins our resolve to reinforce Garuda Indonesia Group’s role as a leading player in domestic and international aviation markets. We believe our partnership with Danantara will accelerate our momentum as a competitive and resilient national airline," he said.

Chief Operating Officer of Danantara, Dony Oskaria, emphasized that the investment goes beyond financial backing, underscoring a hands-on, institutional approach to restructuring.

"We’re not merely providing funding. As a shareholder with a clear mandate, Danantara brings an institutional model of transformation. Through Danantara Asset Management, we’ll oversee every stage of the process with periodic evaluations based on clear performance indicators and accountability," Oskaria said.