April 24, 2026 | 07:39 pm
TEMPO.CO, Jakarta - The Middle East conflict is weighing on Indonesia’s aviation sector, particularly state-owned carrier Garuda Indonesia, through higher fuel costs, currency pressure, and shifting air traffic, according to a senior executive at Danantara Asset Management.
Sahala Situmorang, Managing Director for Finance at Danantara Asset Management, said the transportation and logistics sectors are among the most affected by the conflict, with airlines facing multiple cost pressures.
“For Garuda, the impact is mainly seen in rising aviation fuel prices, the weakening rupiah against the US dollar, and air traffic conditions. However, our main focus is on their cash flow, as it has a significant impact on the company,” Sahala said at the Fitch on Indonesia 2026 event in Jakarta on Thursday, April 23, 2026.
He added that Danantara maintains regular communication with Garuda Indonesia to assess the evolving impact and explore potential support, including financing options and coordination with other state-owned enterprises.
Based on its unaudited interim consolidated financial statements, Garuda Indonesia reported a net loss of US$46.48 million (around Rp800.7 billion) in the first quarter of 2026. The figure marks an improvement from a loss of US$76.49 million recorded in the same period last year.
The airline posted operating revenue of US$762.35 million (approximately Rp13.1 trillion), up from US$723.56 million a year earlier, indicating a modest recovery in business performance despite ongoing external pressures.
Read: Indonesia: US Warship in Malacca Strait for Regional Patrol
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