Jakarta. Indonesia’s sovereign wealth fund Danantara has reduced its planned capital injection into flag carrier Garuda Indonesia to $1.43 billion, about $400 million less than the commitment previously announced, according to the airline’s public filing on Tuesday.

The capital infusion will be carried out through a private placement valued at around Rp 23.7 trillion, Garuda said. The funds will be used primarily for fleet maintenance and to provide additional working capital for Citilink, Garuda’s low-cost subsidiary.

“A revision has been made to the planned use of proceeds, which no longer includes the expansion of the fleet,” the filing stated, explaining the reason behind the smaller funding amount.

Last month, Garuda said that Danantara Asset Management, a subsidiary of the sovereign fund, had been preparing a $1.8 billion capital injection, which included both fresh funding and a debt-to-equity conversion.

The investment forms part of Garuda’s ongoing financial restructuring, with Danantara set to take a stake in newly issued shares through the private placement mechanism.

In addition, $405 million in shareholder loans will be converted into equity under a shareholder loan agreement dated June 24, 2025. The total private placement value under the earlier plan had reached $1.84 billion before the latest downward adjustment.

The reduced capital injection comes as Danantara reviews its portfolio commitments across state-owned enterprises to ensure a more sustainable balance between direct equity participation and operational efficiency. The fund, established earlier this year as Indonesia’s sovereign wealth vehicle, has also taken responsibility for other major infrastructure and transportation assets, including the Jakarta–Bandung high-speed rail project (Whoosh).

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