· The new building is located within the are Soekarno-Hatta Airport, Cengkareng 

· The new concept in service includes brand new aircraft equipped with modernized interior and exterior, state-of-the-art entertainment and the uniquely "Garuda Indonesia Experience (Indonesian Hospitality)"

On Thursday, 23 July 2009, the President of the Republic of Indonesia Susilo Bambang Yudhoyono officially opened the new "Garuda Indonesia Management Building" located in an area known as the "Garuda Indonesia City Center", at the Soekarno-Hatta Airport, Cengkareng.

The occasion was also marked by the official launching of the new Garuda Indonesia "Corporate Identity Brand Refresh" and two brand new aircraft, the Airbus A330-200 and Boeing B-737-800NG (Next Generation) fitted up with sophisticated audio & video entertainment system, and sporting a modernized interior and exterior that reflect the "corporate identity brand refresh" image.

Guests at the opening ceremony included several ministers of Kabinet Indonesia Bersatu, among them Coordinating Minister of Economy, Sri Mulyani, Minister of Transportation, Jusman Syafii Djamal, Minister of State-owned Enterprise, Sofyan Djalil, Minister of Culture and Tourism, Jero Wacik, Head of the Indonesian Police as well as members of the diplomatic corps and other distinguished guests.

Measuring approximately 17,000 sqm, the four-storied Garuda Indonesia Management Building is built on a five hectare piece of land. The elegant and modern design of the building continues in inside where the concept of efficiency is applied in the use of an I-phone telecommunications network, which can reduce overhead expenses and simplify business processes towards an efficient, paperless environment.

The modern structure houses Garuda Indonesia's management and around 1000 employees from various units. The relocation of the head office from the city center to the Soekarno-Hatta Airport already shows positive results which can be narrowed down to a more efficient and effective performance in the airline's operations.

Part of the new service concept also include the range of sophisticated in-flight entertainment (IFE) system available on the new Airbus A330-200 and B-737-800NG, such as the "audio & video on demand (avod)" placed on each seat that offer passengers a choice of 25 in-flight movies, 10 TV programs, a selection of 35 music albums and 25 interactive video games. The business class on the A-330-200 is also fitted with 180° reclining seats that can be turned into flat beds. These facilities are a precedent for Garuda Indonesia's future fleet.

Garuda Indonesia also introduces a refreshing concept in service, the "Garuda Indonesia
Experience", which combines warm Indonesian Hospitality with quality service that emphasizes on safety and comfort.

The airline's ongoing improvements also revealed a new corporate identity brand refresh. The concept behind the change was inspired by "nature's wing" or a reflection of a bird's wing on water and the shape of flower petals commonly found in Indonesia. The spirit of the newly refreshed corporate identity still maintains the two main elements of the old logo, the symbol (bird) and the typography (font). Compared to the cool natural colors (blue, green and aqua) of the old logo, the new refreshed brand displays a wider spectrum of colors and a modern typeface that complements the bird symbol. The choice of dark grey for the font color bridges the transition to the new hues of brown, red and orange that appears in the interior of the new Garuda Indonesia aircraft. The Garuda Indonesia's refreshed corporate identity and its system was designed by Landor Associates, a branding consultancy that also designed the original identity in 1985.

Despite facing adverse conditions, such as the global financial crisis, the Company has continued to move forward and achieved maximum results. Having its business transformation program initiated in 2005 on track, Garuda Indonesia gradually scaled down losses from Rp. 811 bilIion in 2004, to Rp. 688 billion in 2005, and further dropping to Rp. 197 billion in the following year. In 2007, a successful turnaround recorded a profit of Rp. 60 billion. By 2008, the numbers multiplied significantly, reaching a dizzying Rp. 669 billion in net profit.

In anticipation of an increasingly competitive business environment, Garuda Indonesia has
laid down effective strategies for corporate development until the year 2014, called the "Quantum Leap". Several of the steps contained in the "Quantum Leap" program are fleet rejuvenation and enhancement, from 56 aircraft till 116 aircraft; increased flight frequency per week from 1700 till 3000 flights; and increased flight routes. Throughout 2009, the airline plans to establish 18 new routes of which 10 have already been realized.

To help expand its business, Garuda Indonesia purchased 50 Boeing 737-800NGs scheduled to arrive in mid July 2009, and 10 Boeing 777-300ERs which will join the airline's existing fleet in 2011. Meanwhile, new fleet additions, comprising 4 Airbus A330-200s, are expected to arrive in mid 2009 from the manufacturing plant in Toulouse, France.

Jakarta, July 23, 2009

PT. GARUDA INDONESIA (Persero)
VP CORPORATE SECRETARY

PUJOBROTO