Garuda Indonesia President Director Glenny Kairupan in a press conference on Thursday, informed that previously the company had signed a Memorandum of Understanding (MoU) to acquire four aircraft.
However, the airline will only acquire one aircraft as it has already made the down payment, while the arrival of the others has been deferred.
“Recently, an MoU was signed for four aircraft. We have paid the down payment for one unit, while the others are postponed. Repairs remain our top priority. If they aren't fixed, we will continue paying," Kairupan explained.
He continued that the fund injection from Danantara will allow his company to improve its performance over the next two years.
“This funding allows us to follow directives on overcoming new challenges. We aim to regain our financial health within the next two years, as envisioned by the founders,” he pointed out.
On the same occasion, Garuda Indonesia Deputy President Director Thomas Oentoro stated that the company is reviewing its expansion plans and aircraft procurement.
He noted that the presence of the new Director of Transformation, Neil Raymond Mills, played a role in recalculating the company's fleet expansion plans.
"The expansion plans are being reviewed. With the presence of the Director of Transformation, we are recalculating and rearranging the route network. We are not canceling them; we will keep some routes open until the analysis is finalized," Oentoro explained.
Danantara Indonesia has invested Rp23.67 trillion in Garuda Indonesia, of which Rp8.7 trillion (US$505 million) (37 percent) will be allocated for working capital needs, including aircraft maintenance and upkeep.
Meanwhile, Rp14.9 trillion (US$865 million) (63 percent) will support the operation of Garuda Indonesia's subsidiary, Citilink, consisting of Rp11.2 trillion (US$650 million) for working capital and Rp3.7 trillion (US$214 million) to settle fuel purchase obligations to Pertamina for the 2019-2021 period.
The Rp23.67 trillion injection is down from the previous plan of Rp30.31 trillion (US$1,76 billion), according to the information disclosure as of October 2025.
In the information disclosure regarding the previous private placement plan, the airline also stated that it would use 22 percent of the private placement funds to expand both Garuda Indonesia and Citilink fleets.
However, based on the results of the Extraordinary General Meeting of Shareholders (EGMS), no private placement funds will be allocated for fleet expansion.
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Translator: Muhammad Heriyanto, Resinta Sulistiyandari
Editor: M Razi Rahman
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