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AIRLINE issuer PT Garuda Indonesia Tbk (GIAA) is preparing to undertake further corporate actions in 2026 following the receipt of substantial funds from Danantara through a private placement of IDR 23.67 trillion.
According to Garuda Indonesia Deputy President Director Thomas Oentoro, said the support from Danantara will accelerate the improvement of its positive equity position. Furthermore, the company will prepare additional corporate actions, such as a rights issue, to strengthen its performance.
In accordance with the 2026 corporate action roadmap, which aims to enhance the group’s business performance, it is anticipated that additional corporate actions will be implemented to bolster the group’s business operations. This statement was issued by Thomas in a written declaration on Friday, (11/28), 2025.
Previously, GIAA received approval at the Extraordinary General Meeting of Shareholders (EGMS) for Danantara’s capital injection of IDR23.67 trillion through a private placement. The funds consist of a cash deposit of IDR17.02 trillion and a shareholder loan (SHL) conversion of IDR6.65 trillion.
Approximately 37% of the total funds, amounting to IDR 8.7 trillion, was allocated for GIAA’s working capital, including aircraft maintenance and upkeep. The remaining 63%, amounting to IDR14.9 trillion, was allocated to support Citilink’s operational activities, including IDR11.2 trillion for working capital and IDR3.7 trillion for the repayment of fuel purchase obligations to Pertamina for the 2019–2021 period.
Thomas has stated that the company will be able to enhance its performance by leveraging this additional liquidity. It is anticipated that equity will turn positive in 2026, accompanied by a profit.
“We are optimistic that positive equity will be achieved in the near future. This is further supported by the prudent and comprehensive management of various performance indicators, and by the adoption of a collaborative growth mindset from a group performance perspective,” said Thomas.
GIAA is currently facing challenges due to negative equity, a situation where liabilities exceed assets. As of the third quarter of 2025, GIAA’s liabilities stood at US$8.28 billion, with assets amounting to US$6.75 billion. Consequently, the company’s equity remained at a negative US$1.53 billion.
Following the private placement, GIAA proceeded with preparations for additional corporate actions. Among the options for further corporate actions is a rights issue. However, Thomas stated that all of these options will still be reviewed and discussed further with relevant stakeholders.
Meanwhile Dony Oskaria, Chief Operating Officer (COO) of Danantara Indonesia, previously confirmed that GIAA would increase its capital through a rights issue following this year’s private placement.
“Following the private placement, a rights issue will be implemented. Therefore, we anticipate that Garuda will be profitable next year, based on the forecast,” Dony stated following a meeting at the Ministry of Finance in Jakarta last month (October 23, 2025).
GIAA executed the rights issue as part of its strategic initiative to comply with public share or free float requirements. In context, Danantara’s injection into GIAA through a private placement has indeed reduced the public’s shareholding in GIAA below the required level.
Following the private placement, Danantara’s shareholding in GIAA increased. Prior to the transaction, Danantara owned 64.54% of GIAA. According to the pro forma, Danantara’s shareholding in GIAA is expected to rise to 92.03% following the private placement.
Furthermore, there is a possibility that public shareholders could be diluted from 27.47% to 6.17%, indicating a potential dilution of up to 21.29%. This dilution in public shares could potentially prevent GIAA from complying with requirement V.1.1. of Stock Exchange Regulation Number I-A concerning the minimum free float share percentage of 7.5%. [bisnis.com/photo special]
