Jakarta. Garuda Indonesia has secured a Rp 23.67 trillion ($1.42 billion) capital injection from sovereign wealth fund Danantara following an extraordinary general meeting on Thursday, marking a major step in the flag carrier’s financial recovery.

The capital injection was executed through a private placement scheme, consisting of Rp 17.02 trillion in cash and a Rp 6.65 trillion debt conversion. Garuda issued 315.61 billion Series D shares at Rp 75 per share.

President Director Glenny Kairupan said the shareholders’ approval signals a key milestone in the company’s turnaround.

“Support from Danantara as part of the government’s initiative reflects confidence in our strategic direction and long-term vision to build a healthy and resilient national airline,” Glenny said.

About Rp 8.7 trillion, or 37 percent, will be allocated to Garuda Indonesia’s working capital needs, mainly aircraft maintenance. Citilink will receive Rp 14.9 trillion, including Rp 11.2 trillion for working capital and Rp 3.7 trillion to settle outstanding fuel payments to Pertamina from 2019–2021.

Glenny added that the move helps secure the company’s continued listing on the Indonesia Stock Exchange and strengthens its capital structure.

Deputy President Director Thomas Oentoro said the fresh capital will accelerate improvements across business lines. “With stronger capitalization, we will focus on more efficient operations, network optimization, and better service quality centered on customer experience,” he said.

Thomas highlighted the investment supports Garuda’s long-term plan to reinforce its two core pillars Garuda Indonesia and Citilink to stay competitive in both domestic and global aviation markets.

Glenny underscored that aviation recovery requires a careful approach amid cost volatility and shifting market trends. “With a healthier financial foundation, GIAA is ready to enter a more sustainable growth phase,” he said.

The meeting was attended by shareholders representing 69.42 billion shares, equal to 75.88 percent of total ownership. The investment marks another major step in Garuda’s ongoing transformation following the completion of one of the country’s largest corporate restructurings.