📸 Snapshot: Garuda Indonesia’s 2025 Results
Danantara’s capital injection improved Garuda’s balance sheet, but has not turned around the flag airline’s operations.
Garuda’s equity turned positive to USD 91.91 million after Indonesian sovereign fund Danantara injected capital into the flag airline.
However, Garuda’s results were weighed down by a drop in operating revenue and higher finance costs.
Indonesia’s flag carrier Garuda Indonesia has released its results for the full year ended 31 December 2025.
Two months before Garuda’s announcement, Acrostics Asia reported in April 2025 that officials were discussing a potential capital infusion for the airline via sovereign fund Danantara.
I’ve unpacked Garuda’s latest results to gauge the impact of Danantara’s USD 1.4 billion capital injection on its financial health. Overall, the recapitalization improved Garuda’s balance sheet, but has not turned around the airline’s operations.
Positive Equity
Garuda’s equity turned positive to USD 91.91 million in 2025, compared with a negative equity of USD 1.35 billion a year earlier.
Total assets stood at USD 7.43 billion, exceeding total liabilities of USD 7.34 billion. Current assets jumped to USD 1.42 billion from USD 553.91 million, as cash and equivalents more than quadrupled to USD 943.4 million.
While Garuda’s equity has flipped to positive territory, this is a relatively thin buffer that could be eroded again without an operational turnaround.
Revenue Drop
Total operating revenue fell to USD 3.22 billion from USD 3.42 billion on a drop in scheduled airline services.
Garuda also reported a net forex loss of USD 1.21 million, compared with a gain of USD 18 million a year earlier. But the big drag was finance cost, which widened to USD 525.79 million from USD 479.9 million.
Estimated liability for aircraft return and maintenance cost rose to USD 194.48 million from USD 174.15 million, according to a breakdown of the finance cost.
Mixed Cashflows
On the cashflow side, net cash provided by operating activities fell to USD 468.38 million from USD 585.74 million, partly due to a drop in cash receipts from customers and a higher payment of finance cost.
Net cash used in investing activities widened to USD 649.03 million from USD 405.2 million partly because of two items:
Payments for acquisition of fixed assets and advance payment for fixed assets
Payment for aircraft maintenance asset and advanced payment for maintenance
Nevertheless, Garuda reported USD 911.05 million in net cash provided by financing activities, compared with an outflow of USD 243.2 million a year earlier. This was on the back of USD 1.02 billion in proceeds from the issuance of share capital.
Top Shareholder
I wrote on 21 November 2025 that Garuda was handing out stakes in return for the support from Danantara and its fellow state-owned enterprises, but this may limit the room for the national airline and its subsidiaries to obtain equity financing from third parties.
After its equity injection, Danantara Asset Management has become Garuda’s biggest shareholder with a 91.11% stake, according to a shareholding composition filed to the Indonesia Stock Exchange this month. One of Garuda’s commissioners, Chairal Tanjung, holds a 0.002% stake in the airline.
Garuda’s management said in November 2025 that it was committed to meeting the minimum free float requirement, either by selling part of the stake held by its existing shareholders, “adjusting” the number of shares offered to the public, or pursuing other corporate actions while taking into account the market condition.