Garuda Indonesia Details How Fresh Capital Will Be Allocated to GMF and Citilink

Jakarta – PT Garuda Indonesia (Persero) Tbk (GIAA) has announced revisions to its plan for using funds raised through its non-preemptive rights issue, officially known as the Capital Increase Without Preemptive Rights (PMTHMETD). The total value of the corporate action, originally stated at US$1.846 billion, has now been recalculated to approximately Rp 23.67 trillion, according to a disclosure filed with the Indonesia Stock Exchange (IDX) on October 9, 2025.

Under the updated plan, 36.78 percent of the proceeds — about Rp 8.7 trillion — will be dedicated to working capital and day-to-day operational needs. This includes payments for aircraft maintenance and repair. Previously, the airline had allocated only 29 percent of the proceeds for this purpose.

Of that amount, 7.7 percent or Rp 1.82 trillion will come from shareholder loans (SHL), while 29.08 percent or Rp 6.88 trillion will be derived from fresh capital injections for several aircraft requiring maintenance through 2025 and 2026.

Aircraft servicing will be carried out by Garuda Maintenance Facility AeroAsia (GMF) and other maintenance, repair, and overhaul (MRO) partners, in line with the Master Aircraft Maintenance Agreements No. IG/PERJ/DE-3098/2018 and GMF/PERJ/DT-3074/2018, both signed on March 12, 2018.

The remaining 63.22 percent of the raised funds — roughly Rp 14.96 trillion — will be channeled into strengthening Citilink’s capital structure. This will be done through converting shareholder loans into equity and injecting new paid-in capital. Earlier plans set this portion at 37 percent.

Management emphasized that the restructuring focus for Citilink aims to mitigate strategic risks and minimize any negative social impacts.

The capital injection into Citilink is expected to take place in December 2025. About 47.45 percent of the total PMTHMETD funds, equivalent to Rp 11.23 trillion, will be directed toward the subsidiary. Of this, Rp 4.82 trillion will come from SHL conversion, while Rp 6.40 trillion will be fresh capital injections to support Citilink’s working capital and operational expenses, including aircraft maintenance and repair.

Additionally, 15.77 percent of the total funds — approximately Rp 3.73 trillion — will be used entirely for paying down Citilink’s outstanding principal debt to Pertamina related to aviation fuel purchases, totaling US$225 million.