November 8, 2025 | 04:47 pm
TEMPO.CO, Jakarta - Garuda Indonesia announced it expects to return to a positive equity position following a major capital injection of US$1.4 billion (Rp23.6 trillion), which will be finalized at an Extraordinary General Meeting of Shareholders (EGMS) on Wednesday, November 12, 2025.
Garuda Vice Director Thomas Oentoro said the fresh capital will bring the company’s equity to a positive US$349 million, marking a key step in its financial recovery after years of heavy losses.
Thomas explained that Garuda has prepared 11 transformation initiatives following the capital increase through a Rights Offering Without Preemptive Rights (PMTHMETD).
“These initiatives are designed to strengthen business fundamentals, improve productivity, and ensure the company’s long-term performance,” he said in a statement to the Indonesia Stock Exchange (IDX) on Friday, November 7, 2025.
He said Garuda opted for the PMTHMETD mechanism due to the urgent need to restore the company’s equity and support fleet recovery.
“Given the company’s financial condition, this funding mechanism is the most effective option to meet operational and structural needs,” he said.
The capital injection will come from Danantara, a state-backed investment firm, which recently adjusted its planned investment from Rp29.8 trillion to US$1.4 billion (Rp23.6 trillion), according to an amendment submitted on October 29, 2025.
Of the total funds, 37 percent (Rp8.7 trillion) will go toward Garuda’s working capital, including aircraft maintenance and repairs, while 63 percent (Rp14.9 trillion) will be allocated to its low-cost subsidiary Citilink. The Citilink allocation includes Rp11.2 trillion for working capital and Rp3.7 trillion for fuel debt payments.
The capital increase will be formalized at the upcoming EGMS, a move seen as vital to prevent Garuda’s potential delisting from the Indonesia Stock Exchange.
Without the injection, the airline was projected to remain in negative equity through November 2025, limiting its access to financing.
The company continues to face pressure from rising maintenance costs and fleet restoration efforts, both of which have weighed on its financial performance.
As of the third quarter of 2025, Garuda Indonesia recorded a net loss of US$180.7 million (Rp3 trillion), narrowing from US$129.6 million (Rp2.1 trillion) in the same period last year. Its operating income reached US$2.3 billion (Rp38.3 trillion), down from Rp41.6 trillion a year earlier.
Revenue from scheduled flights contributed US$1.8 billion (Rp29.9 trillion), followed by charter services (US$299.5 million) and other income (US$245.8 million).
Garuda’s operating expenses totaled US$2.2 billion, slightly lower than US$2.3 billion in the same period last year. As of September 30, 2025, the airline held total assets of US$6.7 billion, liabilities of US$8.2 billion, and negative equity of US$1.5 billion.
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