Adil Al Hasan, Jakarta – Indonesia's flag carrier PT Garuda Indonesia Tbk (GIAA) announced that the planned capital injection from the state-owned Investment Management Agency of Daya Anagata Nusantara (Danantara) has been reduced from Rp29.8 trillion to US$1.4 billion, or roughly Rp23.6 trillion.
The adjustment was confirmed by Danantara on October 29, 2025, regarding its Additional Capital Participation in Garuda.
Vice President Director Thomas Oentoro said the change automatically alters the company's financial plans.
"There are also adjustments to the fund allocation plan, which no longer includes fleet expansion," Thomas said in a disclosure to the Indonesia Stock Exchange (IDX) on Friday, November 7, 2025.
Thomas explained that 37 percent of the revised funding, about Rp8.7 trillion, will be allocated to Garuda Indonesia's working capital, including aircraft maintenance and repair costs.
The remaining 63 percent, or Rp14.9 trillion, will be channeled to its low-cost subsidiary Citilink, with Rp11.2 trillion for working capital and Rp3.7 trillion to settle outstanding fuel purchase debts.
The additional capital is expected to be finalized at an Extraordinary General Meeting of Shareholders (EGMS) on Wednesday, November 12, 2025.
The capital injection aims to restore Garuda's negative equity, which has hindered access to financing and raised concerns over potential delisting from the Indonesia Stock Exchange.
Garuda has been under financial strain due to rising aircraft maintenance and restoration costs, affecting both Garuda and Citilink's performance.
According to the company's latest financial report, Garuda Indonesia posted a net loss of US$180.7 million (Rp3 trillion) as of the third quarter of 2025, widening from US$129.6 million (Rp 2.1 trillion) in the same period last year.
Its operating revenue stood at US$2.3 billion (Rp38.3 trillion), down from Rp1.6 trillion year-on-year. Revenue sources included scheduled flights at US$1.8 billion (Rp29.9 trillion), charter services at US$299.5 million, and other income at US$245.8 million.
Meanwhile, operating expenses decreased slightly to US$2.2 billion from US$2.3 billion a year earlier. As of September 30, 2025, Garuda Indonesia reported total assets of US$6.7 billion, negative equity of US$1.5 billion, and liabilities amounting to US$8.2 billion.