Iwan Joeniarto, President Director of GMF AeroAsia, said the company is still focused on business expansion - together with its strategic partners - into Batam, Australia, South Korea and the Middle East.

For example, the construction of a new airplane maintenance facility on the island of Batam. This project, estimated to be completed in 2019, requires USD $50 million in investment. Recently, GMF AeroAsia also said it had reached an agreement with the Australia-based KORR Group to act as a strategic partner in Australia. Names of other strategic partners have not been revealed yet.

The USD $100 million that is allotted to capital expenditures in 2018 is financed through bank loans and factoring. Joeniarto added that GMF AeroAsia will soon conduct a private placement in which it will sell another 10 percent stake (including a stake owned by parent company Garuda Indonesia). The stake will be sold to a strategic partner and therefore the company is currently doing negotiations with several possible partners. GMF AeroAsia aims to obtain USD $200 million through the private placement.

Stock Quote Garuda Maintenance Facility AeroAsia - GMFI: