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View all search resultsDanantara injects Rp 6.65 trillion into Garuda Indonesia
The initiative will be conducted in phases, with the first focusing on the maintenance and operational readiness of the fleets of both the full-service carrier and its low-cost subsidiary, Citilink.
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Soaring: A Garuda Indonesia aircraft takes flight in this undated photograph.
(Shutterstock.com/e X p o s e)
D
anantara Indonesia is set to inject Rp 6.65 trillion (US$407.4 million) into PT Garuda Indonesia as part of a wider funding package to support the operator of the national flag carrier.
The capital support, to be paid out through PT Danantara Asset Management, includes business optimization, long-term funding, governance-based comprehensive assistance and performance restructuring, according to a press release issued by the state asset fund on Tuesday.
The state asset fund, which was put in charge of Indonesia’s state-owned enterprises (SOEs) including Garuda Indonesia earlier this year, will provide an initial investment in the form of a shareholder loan worth Rp6.65 trillion to fund Garuda Indonesia’s maintenance, repair and overhaul (MRO) business.
The total funding package from Danantara is projected to reach around $1 billion.
The initiative will be conducted in phases, with the first phase focusing on the maintenance and operational readiness of the fleets of both Garuda Indonesia’s full-service carrier (FSC) and its low-cost carrier (LCC) subsidiary, Citilink.
The next phase is to focus on optimizing operational and financial performance to support long-term business transformation.
“The funding support reflects our mandate for transformation, through a professional and measurable approach that prioritizes the principles of good governance,” said Danantara COO Dony Oskaria, as quoted in the press release.
