The agreement gives Garuda a seat allocation on each of PALs four flights weekly on the route.
The service will be marketed and sold in the Philippines and Indonesia as joint PAL/Garuda flights, but they will actually be operated using PAL aircraft and crew.
The deal strengthens PALs partnership with Garuda and provides the Philippine flag carrier access to the tourist traffic to Indonesia.
Garuda, on the other hand, gains a foothold in Manila, a market it has been absent from for the last four years.
The Garuda pact is PALs first code share since entering rehabilitation two years ago in which it is the operating carrier an indication of PALs improved operational condition.
PAL presently code-shares with five other carriers on various routes. These are Egypt Air between Manila and Cairo; Emirates between Manila and Dubai; Gulf Air between Manila and Abu Dhabi; Kuwait Airways between Manila and Bangkok; and Malaysia Airlines between Manila and Cebu, and Kuala Lumpur, Kuching and Kota Kinabalu.
It also operates a joint cargo service with Lufthansa Cargo between Manila and Frankfurt.
PAL and Garuda have a longstanding commercial relationship dating back to 1986, when the two carriers first operated a joint service.
PAL resumed flights to Jakarta (via Singapore) last Dec. 2, 2000 using widebody Airbus 330-300 jets.
Departures from Manila are every Monday, Wednesday, Thursday and Saturday. The return service departs Jakarta the following day.