Garuda Indonesia Receives Reduced Equity Injection of $400 Million

Garuda Indonesia, the national airline of Indonesia, announced on Tuesday that it will be receiving a capital injection of $1.4 billion from Danantara Indonesia’s asset management unit. This injection is $400 million lower than the initial disclosure made by the airline just last month. Initially, it was stated that Danantara would provide $1.8 billion in cash injection and convert the wealth fund’s loans into equity. However, in a filing on Tuesday, Garuda revealed that the revised injection amount would be around 23.67 trillion rupiah, equivalent to $1.43 billion. This capital infusion is earmarked for covering fleet maintenance expenses and expanding funding for Garuda’s budget airline, Citilink. The company stated in an earlier filing that the planned use of funds no longer includes fleet expansion, hence the reduction in the injection amount.