Garuda Indonesia Secures Rp 23.67 Trillion Capital Injection from Danantara, Focused on Reviving Citilink
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JAKARTA, Investortrust.id — National flag carrier Garuda Indonesia Tbk has announced plans to raise Rp 23.67 trillion through a private placement, with a significant portion of the funds earmarked to boost the capital of its low-cost subsidiary, Citilink Indonesia.
The transaction will involve the issuance of 315.61 billion new shares at an exercise price of Rp 75 per share, representing 10 percent of Garuda’s issued and paid-up capital. According to the company’s brief prospectus, the funding comprises Rp 17.02 trillion in fresh capital from PT Danantara Asset Management and Rp 6.65 trillion from the conversion of Danantara’s shareholder loans into equity.
The capital increase proposal will be voted on during the extraordinary general shareholders’ meeting scheduled for Wednesday, Nov. 12, 2025. Following the approval, Garuda expects the private placement to significantly improve its balance sheet health. The company’s current ratio is projected to rise from 0.44 times to 1.22 times, while its debt-to-asset ratio is expected to improve from 123 percent to 101 percent.
Garuda plans to allocate 37 percent of the proceeds for working capital and operational expenses, including aircraft maintenance and repair costs. Of that portion, US$111.34 million and Rp 6.88 trillion will be used to fund maintenance and component replacement for aircraft due in 2025–2026, with the work carried out by PT Garuda Maintenance Facility Aero Asia (GMFI).
The remaining 63 percent, equivalent to Rp 14.96 trillion, will be injected into Citilink Indonesia through both fresh capital and the conversion of shareholder loans. The recapitalization aims to stabilize Citilink’s financial position and mitigate potential social and operational disruptions.
Garuda stated that the Citilink capital increase is scheduled for completion by December 2025. Of the total, Rp 11.23 trillion will be used to finance working capital and operations, Rp 3.73 trillion to repay US$225 million in outstanding fuel purchase debt owed to Pertamina, and Rp 6.40 trillion, or approximately US$386 million, to fund maintenance and restoration of Citilink’s aircraft fleet — including airframes, engines, auxiliary power units, and landing gear systems.
Financially, Garuda Indonesia reported total revenue of US$2.39 billion for the first nine months of 2025, down from US$2.56 billion in the same period last year. The company’s net loss widened to US$180.77 million from US$129.61 million a year earlier, reflecting persistent cost pressures and slower-than-expected recovery in international flight segments.