Danantara’s $1.4 Billion Garuda Play Emerges as Key Reform Test

Indonesian sovereign wealth fund Danantara’s growing momentum in state-firm restructuring is putting fresh focus on its $1.4 billion bet on PT Garuda Indonesia, a key test of its ability to revive other troubled companies.

The distressed carrier’s full-year results due to be published in March will offer the first clues on whether the bailout is gaining traction, with investors watching for signs that Garuda has begun to erase years of capital deficit. The financial support is Danantara’s largest deployment to date, adding pressure for the rescue plan to deliver results.