Garuda Indonesia is in early talks with Danantara, Indonesia's newly established sovereign wealth fund, for a potential capital injection.Despite concluding a debt restructuring in late 2022, the airline faces financial challenges, including a reported loss of IDR1.2 trillion (approximately USD73 million) in the first quarter of 2025 and a balance sheet showing about USD1.4 billion more in debt than assets.Danantara, launched in February 2025, aims to emulate successful models like Malaysia's Khazanah and Singapore's Temasek, with initial funding projected at around IDR320 trillion (USD19.5 billion).The discussions are preliminary, focusing on the amount of capital needed to stabilize Garuda's finances.If successful, this partnership could play a crucial role in revitalizing Indonesia's flagship carrier.
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