IDR 6.65 Trillion Capital Injection: Garuda Indonesia Set to Expand Fleet and Boost Tourism

Jakarta, June 25, 2025 – National airline Garuda Indonesia is set to receive a capital injection of IDR 6.65 trillion from the Danantara Investment Management Agency, as part of the government’s strategic initiative to strengthen the country’s tourism and air transportation sectors. Minister of State-Owned Enterprises and Chairman of Danantara’s Supervisory Board, Erick Thohir, emphasized that the funding will not come from State Capital Injection (PMN), but rather as a corporate investment through Danantara’s operational holding company. The funds will be used to support Garuda’s working capital and bolster its business structure, including plans to expand its aircraft fleet. “This is not PMN—this is a strategic investment. Garuda plays a crucial role in tourism and Hajj services. That’s why Danantara is stepping in with a more modern, business-oriented funding approach,” Erick said during a press conference in Jakarta on Tuesday (June 25). Danantara CEO Rosan Roeslani confirmed that the assessment process is nearing completion. A key focus of the investment will be strengthening Garuda’s fleet to meet rising demand for both domestic and international air travel. Garuda Indonesia currently faces significant financial challenges. As of Q1 2025, the airline recorded a net loss of around IDR 1.2 trillion and a negative equity position of IDR 23 trillion. Despite this, the capital injection from Danantara is expected to improve cash flow and support operational recovery. The government stressed that the investment aligns with President Prabowo Subianto’s directive to transform Garuda into a “national growth engine,” particularly by improving connectivity to top tourism destinations and supporting Hajj and Umrah travel. Economists and state-owned enterprise observers have cautioned that the injection must be accompanied by comprehensive restructuring and operational efficiency, to ensure the funds are not wasted.

ECONOMICS