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PT DANANTARA Asset Management (DAM), a subsidiary of the Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia), has officially announced a strategic portfolio management initiative in collaboration with PT Garuda Indonesia Tbk. this initiative is designed to support the comprehensive transformation of the national airline.
This step is a continuation of the restructuring process that Garuda Indonesia implemented in 2022, while also marking the start of a new phase of the company’s transformation to become a healthy, competitive, and world-class airline.
This comprehensive transformation support includes business optimization, long-term funding, and comprehensive assistance based on governance and performance health restructuring. Danantara Indonesia has committed to providing an initial investment of IDR6,650,505,000,000 or the equivalent of US$405,000,000 in the form of a shareholder loan to fund maintenance, repair, and overhaul (MRO) needs. This contribution is part of a comprehensive funding support package totalling approximately US$1 billion.
This strategic initiative is undertaken to ensure the seamless operational continuity and the consistent delivery of services by Garuda Indonesia and Citilink. It also serves as a foundational element in the broader transformation program by Danantara Indonesia and the Garuda Indonesia Group.
This collaboration is poised to have a favorable impact on the enhancement of Garuda Indonesia’s performance, fostering market confidence, and bolstering its overall competitiveness. The integration of advanced technology is a key element of this initiative, aiming to enhance operational efficiency and productivity.
The initial phase of this collaboration is focused on maintaining and improving the operational readiness of the Garuda Indonesia Group fleet, both for Garuda Indonesia as a full-service carrier (FSC) and Citilink as a low-cost carrier (LCC).
In addition, this financing support will be followed by a series of steps aimed at optimizing operational and financial performance. These measures are intended to support long-term business transformation into a sustainable airline.
Dony Oskaria, Chief Operating Officer (COO) of Danantara Indonesia, stated that this step represents a new approach in the restructuring and transformation of the company under the management of Danantara Indonesia.
“Garuda Indonesia is not just a business entity, but a symbol of air sovereignty and national pride. The distribution of these funds is a tangible manifestation of the transformation mandate we carry out, employing a professional, quantifiable approach and prioritizing the principles of good governance,” he said.
He explained that our involvement is not merely financial, but also substantial on a governance level, with a defined mandate and a systematic approach. Through Danantara Asset Management, we will ensure that the transformation process runs according to plan, and each stage will be evaluated periodically based on achievements and accountability.
This comprehensive transformation with Danantara Indonesia marks the beginning of the next phase of Garuda Indonesia’s transformation, which was previously carried out from 2021 to 2024 through fundamental operational and financial restructuring with the aim of ensuring the sustainability of the company’s business.
Garuda Indonesia, with the strategic support of Danantara Indonesia, is entering a recovery phase that will focus on performance acceleration to strengthen competitiveness and optimize production equipment.
Meanwhile, Wamildan Tsani, President Director of Garuda Indonesia, explained that this collaboration is an important milestone in Garuda Indonesia’s transformation process.
He also explained that with the support of Danantara Indonesia, Garuda Indonesia is projecting the strengthening of operational capabilities through business and performance optimization, so that it can strengthen Garuda Indonesia’s position as a world-class airline.
Wamildan went on to say that the success of performance recovery does not depend solely on financial support, but also on the company’s commitment, supported by various stakeholders, to rearrange operational and business strategies as a whole.
Dony Oskaria added to become a world-class airline, Garuda Indonesia must be led by world-class talents. We are open to presenting internationally experienced leaders because Garuda’s success is a reflection of our commitment to professional growth.
Dony also explained that the entire process of implementing this transformation plan will be supervised by an international standard governance system, accompanied by an Independent Financial Controller to oversee the use of funds and an Aviation Industry Expert who provides technical expertise, benchmarks with global industry standards, and ensures the implementation of best practices in the Garuda Indonesia transformation process.
This initiative aligns with the national strategy to enhance domestic and international connectivity, promote tourism growth, and solidify Indonesia’s standing as a prominent regional aviation hub in Southeast Asia. This initiative aligns with Danantara Indonesia’s commitment to advancing the Indonesia Emas 2045 vision by fostering inclusive and sustainable economic growth. [sources/photo special]
