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Indonesian sovereign wealth fund Danantara’s growing momentum in state-firm restructuring is putting fresh focus on its $1.4bn 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.“All eyes will be on Garuda’s prospective turnaround,” said Harry Su, managing director of research at Samuel Sekuritas Indonesia. “This will set the base for investors to gauge other potential state-owned enterprises success stories by Indonesia’s sovereign wealth fund going forward.”Danantara is in discussion for $500mn in support for steelmaker PT Krakatau Steel and is poised to restructure $5bn of debt owed by the consortium which operates Whoosh, the country’s first high-speed rail, by the end of the year. Construction firms PT Waskita Karya and PT Wijaya Karya are among companies that also need restructuring.The stakes are high for Danantara to get Garuda back on solid footing amid the fund’s broader ambitions to overhaul roughly 900 state-owned firms under its umbrella. A successful turnaround would bolster the fund’s credibility and signal to investors that it can drive reforms across Indonesia’s state holdings.The rescue package for Garuda is expected to bring its assets back above its liabilities by $183mn by the end of the year, the carrier said in a stock exchange filing. Its deficit would have stood at $65mn in June, after taking the capital injection into account, compared to an actual deficit of $1.5bn, it said.In a sign of improving investor sentiment, the company’s shares have climbed 51% since late June, when Danantara first aided the carrier with a $405mn loan. Its dollar-denominated sukuk maturing in 2031 has gained 42% as well to trade at around 90 cents on a dollar, underscoring firmer recovery expectations.Still, some analysts have raised doubts about the sustainability of Danantara’s support for Garuda, noting limitations on the use of the capital injection and that the carrier is operating with only about half the fleet it had before the pandemic. Rising leasing costs for new planes and the absence of a longer-term plan also pose headwinds.“The $1.4bn won’t be enough to put the airline on stable footing,” said Shukor Yusof, founder of aviation consultancy Endau Analytics Pte. “Garuda needs to get rid of all the excesses, fix the years of mismanagement and someone in the government or Danantara has to drive the changes to turn the airline around.”Garuda’s recovery will be key, not just as a validation of the fund’s model but also due to the carrier’s national importance. The 76-year-old airline is a major employer and a key mode of transport for the country made up of 17,000 islands over an area spanning the distance from New York to London. It is also set to play a role in the trade deal between Indonesia and the US with aircraft purchases.“Danantara seems to be taking things a lot faster with all these mergers and streamlining of the state-owned enterprises,” said Rain Yin, sovereign analyst at S&P Global Ratings. “That is one efficiency that we do seem to be observing in this process and also in supporting the SOEs under it.”The restructuring of Garuda will provide a proof of concept on how Danantara can turn around other state companies and allow them to grow in a sustainable way. The outcome will shape the fund’s plan to consolidate the state sector into roughly 200 competitive, globally focused companies and support President Prabowo Subianto’s target of 8% annual economic growth.“Danantara is a big bet” for Indonesia, said Alessandro Gazzini, managing director at Alvarez & Marsal Inc in Jakarta. “This will be a test case for long term solution of troubled state-owned companies and whether Danantara can find a way to introduce more business and market oriented solutions to solve some of these problems.” 

An earthquake measuring 5.3 magnitude on the Richter scale struck Seram Island in Indonesia on Monday.According to the Indonesian Agency for Meteorology, Climatology and Geophysics (BMKG), the quake occured at a depth of 10 kilometers.No casualties or material damage have been reported so far.Indonesia lies along the Pacific Ring of Fire, making it one of the most earthquake- and volcano-prone countries in the world.

An earthquake measuring 6.6 on the Richter scale struck on Thursday a small island northwest of Sumatra in western Indonesia.The US Geological Survey (USGS) said that the quake struck Simeulue Island at a depth of 25.4 km.There were no immediate reports of tsunami warning.Indonesia is regularly exposed to earthquakes due to its location on the Pacific Ring of Fire, where many tectonic plates meet and cause frequent volcanic and seismic activity. 

Indonesia's National Disaster Management Agency (BNPB) announced that eight people have died and 58 others were injured in floods and landslides in South Tapanuli Regency on the Indonesian island of Sumatra.The BNPB stated that the disasters affected 11 sub-districts, with 50 houses damaged and two bridges destroyed by the floods and landslides in North Tapanuli Regency.Additionally, 1,902 houses were affected by the floods in nine sub-districts in the central part of the province, and thousands of residents were forced to evacuate.Earlier this month, 15 people died and eight others went missing due to floods in eastern Indonesia.

 An earthquake measuring 5.2 on the Richter scale struck East Java province in Indonesia on Monday.The Indonesian Meteorology, Climatology and Geophysics Agency said that the earthquake was at a depth of 10 km.Indonesia is regularly exposed to earthquakes due to its location on the Pacific Ring of Fire, where many tectonic plates meet and cause frequent volcanic and seismic activity. 

An earthquake measuring 5.2 on the Richter scale struck the Halmahera region of North Maluku province in eastern Indonesia.The Indonesian Meteorology, Climatology and Geophysics Agency said that the earthquake was at a depth of 10 km.There have been no reports of material damage or human losses as a result of the earthquake so far.Indonesia is regularly exposed to earthquakes due to its location on the Pacific Ring of Fire, where many tectonic plates meet and cause frequent volcanic and seismic activity.

A landslide in Central Java Province, Indonesia, has resulted in the death of six people and the disappearance of 17 others, following prolonged heavy rainfall that softened the soil and caused it to slide.Budi Irawan, an official at Indonesia's disaster management agency, stated that the landslide, which occurred in the Cibinong area, buried dozens of homes.He reported that rescue teams had found three more bodies, bringing the total number of confirmed fatalities to six, while 17 others remain missing.Budi explained that search operations are facing major challenges due to the depth of the debris, which ranges between three and eight meters, slowing down the rescue teams' access to potential victims.Indonesia's Meteorological Agency indicated that the rainy season, which began last September and continues until next April, increases the risk of floods and landslides in several regions of the country.The city of Pekalongan in Central Java witnessed a similar landslide caused by flash floods last January, resulting in the deaths of at least 25 people.

An earthquake measuring 5.1 on the Richter scale struck Papua Island in eastern Indonesia on Wednesday morning.The epicenter of the quake was located 135 km northeast of Tual city, at a depth of 10 km, the US Geological Survey (USGS) reported.There have been no reports of material damage or human losses as a result of the earthquake so far.Indonesia is regularly exposed to earthquakes due to its location on the Pacific Ring of Fire, where many tectonic plates meet and cause frequent volcanic and seismic activity.

Indonesian students protested in Jakarta on Monday as President Prabowo Subianto completed a year in office, two months after violent demonstrations nationwide, with one expert faulting the government on grounds of openness and public participation.About 300 students clad in yellow and blue jackets gathered near the presidential palace while Prabowo's cabinet met, far fewer than the numbers in August's student-led protests against government policies and lawmaker perks that spread countrywide."Free meals programme equals poison," read a banner carried by students demanding an end to Prabowo's flagship school meals campaign for millions of students and pregnant women, but which instead gave thousands of students food poisoning."There are still problems that have not been tackled, although the process has started," said Maulana Sai, a 25-year-old student of Jayabaya University, who called for reforms to government policies, including the meals programme.The August protests snowballed after a police vehicle hit and killed a delivery driver, driving up the death toll to present Prabowo with his biggest challenge since his landslide election last year.A coalition of student groups popularly called BEM SI published a poster of Monday's protest on Instagram, accompanied by hashtags #1YearIsEnough and #1YearOfContinuousProblems.Prabowo's first year was marred by a lack of public participation in his policies, said Wasisto Raharjo Jati, a politics researcher at Indonesia's National Research and Innovation Agency."Generally, Prabowo's government experienced some turbulence in the first year, especially with regards to a lack of openness and participation," he said, citing the meals programme.In a wide-ranging speech to his cabinet, Prabowo defended the free meals programme on Monday, while pledging better education and medical care.To fund his programmes, which also include free health check-ups and schools for poorer Indonesians, Prabowo has cut government spending or diverted money from other areas, such as education.The former special forces commander has expanded the role of the military, putting soldiers to work on the meals programme and agriculture projects.Prabowo has promised to lift economic growth to 8% during a five-year term that runs until 2029. He has launched multiple stimulus packages to spark activity.

The President of the Republic of Indonesia Prabowo Subianto left Doha on Friday evening, after a working visit to the country.Subianto and his accompanying delegation were seen off at Doha International Airport by HE the Deputy Prime Minister and Minister of State for Defense Affairs Sheikh Saoud bin Abdulrahman bin Hassan Al-Thani, and the Ambassador of the Republic of Indonesia to the State of Qatar Ridwan Hassan. His Highness the Amir Sheikh Tamim bin Hamad Al-Thani and the President of the Republic of Indonesia Prabowo Subianto held a meeting at his office in Lusail Palace on Friday. Discussions during the meeting dealt with bilateral relations between the two countries, and means to strengthen them in various fields.

His Highness the Amir Sheikh Tamim bin Hamad Al-Thani and the President of the Republic of Indonesia Prabowo Subianto held a meeting at his office in Lusail Palace on Friday. Discussions during the meeting dealt with bilateral relations between the two countries, and means to strengthen them in various fields.The meeting also discussed the latest regional developments and efforts to achieve peace and stability for the benefit of the peoples of the region.At the outset of the meeting, His Highness the Amir welcomed President Subianto and his accompanying delegation, expressing his pleasure with this visit, which reflects the strong relations between the two countries.For his part, the Indonesian President reiterated his country's full solidarity with the State of Qatar and its people, and its support for all measures taken to maintain its sovereignty and territorial integrity.He stressed that the treacherous Israeli attack constitutes a violation of Qatar's sovereignty, violates international laws and norms, and undermines the security, stability, and prospects for peace in the region.President Subianto hailed the efforts of His Highness the Amir and the State of Qatar, and their endeavors to achieve peace and stability in the region and the world.In this regard, His Highness the Amir expressed his deep appreciation to the Indonesian President for his solidarity and sincere feelings, and his country's supportive stance toward the State of Qatar and its people.The meeting was attended by HE Chief of the Amiri Diwan Abdullah bin Mohammed Al Khulaifi, HE Minister of State at the Ministry of Foreign Affairs Dr. Mohammed bin Abdulaziz bin Saleh Al Khulaifi, and a number of Their Excellencies senior officials.On the Indonesian side, it was attended by the Minister of Foreign Affairs Sugiono, the Cabinet Secretary Teddy Indra Wijaya, as well as a number of senior officials and members of the accompanying delegation.

The President of the Republic of Indonesia Prabowo Subianto arrived in Doha Friday, on a working visit to the country.Subianto and the accompanying delegation were welcomed upon arrival at Doha International Airport by HE the Deputy Prime Minister and Minister of State for Defense Affairs Sheikh Saoud bin Abdulrahman bin Hassan bin Ali Al-Thani, and the Ambassador of the Republic of Indonesia to the State Ridwan Hassan.