As part of the restructuring of its Floating Rate Notes due 2007 (of which US$115,680,216 and IDR 146,514,496,000 are outstanding), Garuda previously invited noteholders to tender their notes in a reverse Dutch auction process. Garuda wishes to announce that today it has confirmed winning tenders for approximately US$45 million of notes. Garuda will purchase these notes for an aggregate purchase price of US$25 million. This represents a weighted average price of 56% on the outstanding principal of such notes.

It is expected that Garuda will pay the purchase price to the winning bidders on or about January 21, 2010, and upon such payment, the purchased notes will be cancelled.

Emirsyah Satar, Chief Executive Officer of Garuda, said that "Garuda is very pleased with the results of the tender offer. With a purchase price of only US$25 million, Garuda has successfully reduced its debt by over US$45 million. In conjunction with the restructuring of the notes approved by noteholders, which extends the maturity date of the remaining notes to January 2018, Garuda's balance sheet is significantly strengthened."

Garuda has plans to launch a similar tender offer to certain lenders holding loans advanced in connection with lease financings for aircraft, with an aggregate purchase price of up to US$11 million, in connection with the restructuring of those loans.

Garuda was advised on the tender offer for its Notes by N M Rothschild & Sons (Singapore) Limited, as restructuring advisor, K&L Gates LLP in Singapore, as international legal counsel, and Wiriadinata & Saleh in Jakarta, as Indonesian legal counsel.

Jakarta, 13 Januari 2009

PT. GARUDA INDONESIA
VP CORPORATE COMMUNICATIONS

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