November 13, 2025 | 06:01 pm
TEMPO.CO, Jakarta - Indonesia's flagship carrier Garuda Indonesia received a capital injection of Rp23.67 trillion from sovereign wealth fund Danantara. This decision was approved at the Extraordinary General Meeting of Shareholders held at the Garuda Indonesia Management Building Auditorium in Tangerang on Wednesday, November 12, 2025.
Over 63 percent of those funds, or Rp14.9 trillion, will be used to support the operational needs of Garuda's subsidiary, Citilink. Meanwhile, Rp11.2 trillion is allotted for working capital and Rp3.7 trillion to settle fuel purchase debts to Pertamina.
The remaining Rp8.7 trillion is earmarked for the working capital needs of Garuda Indonesia, including fleet maintenance.
This capital injection is carried out through the issuance of 315.6 billion Series D shares at an exercise price of Rp75 per share.
Garuda Indonesia's President Director, Glenny Kairupan, described this step as part of the continued efforts to improve and transform the company following the successful major restructuring conducted a few years ago.
"With stronger capitalization, we can reinforce operational reliability, improve fleet readiness, and provide modern and reliable air transportation services for the public," said Garuda Indonesia's President Director, Glenny Kairupan, as quoted from a written statement on Thursday, November 13, 2025.
The EGM was attended by shareholders representing 75.88 percent of the company's total shares. During the meeting, shareholders approved Danantara's capital injection through the Mechanism of Capital Increase without Preemptive Rights (PMTHMETD). The capital consists of a cash deposit of Rp17.02 trillion and a debt conversion of Rp6.65 trillion.
Glenny stated that this step is part of the company's ongoing revitalization and transformation program following a significant debt restructuring carried out a few years ago. With the additional capital, the state-owned airline plans to strengthen its financial structure, improve fleet readiness, and accelerate operational transformation, including at its subsidiary, Citilink.
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