Garuda received Rp1.1 trillion loan from Danareksa
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Garuda Terima Pinjaman dari Danareksa Rp1,1 Triliun
13 December 2023
Solo – PT Garuda Indonesia Tbk (GIAA) and its subsidiary, Citilink, received Rp1.1 trillion loans from PT Danareksa, a state-owned enterprise (SOE) holding specialising in transformation and investment. “We were asked to help. Not many people might be aware of this, but we have provided Rp1.1 trillion financing to Garuda and Citilink. So, when no bank agreed to provide financing for Garuda and Citilink, we stepped in,” said Danareksa President Director Yadi Jaya Ruchandi at a media gathering event in Lokananta, Solo, Central Java on Monday (11/12/2023).
Yadi revealed that Danareksa’s consideration for providing financing support to GIAA and Citilink was because Danareksa understood the risks and transaction structure. Therefore, it is necessary to ensure that the proceeds provided are used according to their intended purpose.
On the same occasion, Acting President Director of PT Perusahaan Pengelola Aset (PPA) Avianto Istihardjo added that the loans had been disbursed to Garuda in the amount of Rp725 billion and Citilink Rp375 billion. “Garuda’s [loan] was disbursed last year, and Citilink’s from August to October this year,” said Avianto in response to Investor Daily. PPA is a member of Danareksa SOE holding.
Although Garuda is currently still in recovery process, Avianto said that PPA has no plans to provide refinancing to the issuer having GIAA ticker code. “There are no plans yet, because the current one is already quite large, about one trillion,” said Avi.
Garuda Indonesia President Director Irfan Setiaputra confirmed this. According to him, the company has received financial support in the form of a loan from Danareksa. “It was not a [capital] injection, but a loan,” said Irfan briefly to Investor Daily on Tuesday (12/12/2023). (mwd)
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