Jakarta, June 24 -- Indonesia's sovereign wealth fund, Danantara, through its subsidiary Danantara Asset Management, has extended a shareholder loan of US$405 million to national flag carrier Garuda Indonesia.

Danantara Chief Operating Officer Dony Oskaria said the loan reflects a new approach to restructuring and transforming state-run companies under Danantara's management.

"This funding reflects our mandate for transformation, carried out professionally with a measurable approach and a strong emphasis on good governance," Oskaria said at a press conference on Tuesday.

The loan will be used to support Garuda's aircraft maintenance, repair, and inspection operations. The broader support package includes business optimization, long-ter...