Jakarta. Flag carrier Garuda Indonesia announced Tuesday that it had secured a shareholder loan worth $405 million from the country’s sovereign wealth fund, Danantara.

The fund is providing the loan via the Danantara Asset Management, which is in charge of managing the country’s state-run enterprises. Garuda will use the freshly earned loan for maintenance, repair, and inspection needs. Parts of the money will also go into improving the operations of Garuda Indonesia Group’s entire fleet, including its low-cost carrier Citilink.

According to Danantara Indonesia’s chief operating officer, Dony Oskaria, the shareholder loan is part of a larger financial support that totals $1 billion.

“The funding shows that we are carrying out the transformation [of state companies] with a professional and measurable approach. We also uphold the principles of good governance,” Dony was quoted by Antara news agency.

Garuda Indonesia’s president director, Wamildan Tsani, said he had high hopes for the partnership with Danantara, saying that it could cement the company’s position in the industry.

"We believe that the success of performance recovery does not depend only on financial support, but also on the company's commitment, supported by various parties to reorganize operational and business strategies as a whole," Wamildan said.