JAKARTA State-owned Garuda's efforts to expand its global presence jibe with the Indonesian government's push to make tourism an economic pillar.

Malaysia, Thailand and Singapore accounted for more than 60% of the 105 million visitors to Southeast Asia in 2014. Indonesia attracted slightly less than 10 million.

President Joko Widodo aims to raise that figure to 20 million by 2020. The government has started waiving visa fees for nationals of about 170 countries and plans to ease foreign ownership restrictions for businesses related to tourism, such as restaurants, bars and cafes. Building Garuda's brand in Europe and the U.S. is the next step in the country's quest to become a major travel destination.

This will not be easy. Garuda's high level of debt -- the total of $1.35 billion in 2015 was 1.4 times its total equity -- limits its ability to borrow for big investments. The airline also faces intense competition. Budget carriers such as Indonesia's Lion Air and Malaysia's AirAsia have strong footholds in second-tier cities.

Garuda's return to profitability last year has had only a modest effect on investor confidence. The airline's price-earnings ratio stands at about 14, lower than Singapore Airlines' 21. The earnings boost from lower oil prices has been partly offset by the weak rupiah, since a major portion of Garuda's expenses are in dollars.

To achieve profitability, Garuda has also shed loss-making routes. The airline's new expansion kick will test its ability to remain in the black.