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Distressed Indonesian Airline to Access State Fund for $1.4 Billion
- Garuda Indonesia seeks financial support from Danantara Asset Management
- Agreement reached to convert $405 million loan into equity
Ground crew at Soekarno-Hatta International Airport in Jakarta are seen loading luggage onto a Garuda Indonesia flight.
Photographer: Dimas Ardian/Bloomberg
By Norman Harsono on October 7, 2025, at 6:20 AM UTC.
PT Garuda Indonesia is poised to secure up to $1.44 billion from Indonesia’s sovereign wealth fund, aimed at stabilizing the financially troubled state-owned airline.
The airline plans to present this financial strategy to its shareholders for approval on November 12. The proposed funding will come from PT Danantara Asset Management, a subsidiary of the wealth fund, through a private placement. Additionally, Garuda has finalized an agreement to convert a $405 million loan it received from Danantara, which holds a majority stake in the airline, into new equity shares.
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Source: Original