GARUDA’S BURDEN IS INCREASING, GOV’T NEEDS TO TAKE IMMEDIATE ACTION

THE Indonesia’s government is expected to immediately determine the right option to provide clarity of decisions for the sustainability of PT Garuda Indonesia Tbk.

According to aviation observer Alvin Lie, Wednesday (8/11) said that Minister of State-Owned Enterprises, Erick Thohir needs to move faster and immediately decide on policies regarding the fate of Garuda Indonesia. Currently, the fate of the state-owned airline has been hanging for too long.

“In fact, on the other hand, Garuda Indonesia is also still continuing to renegotiate contracts with creditors and lessors simultaneously with the proposed Postponement of Debt Payment Obligation (PKPU) process,” he said.

Alvin Lie explained, what is certain is that every day Garuda’s debt burden is increasing. The longer there is no decision from the Owner, the heavier Garuda’s burden will be. Pity left hanging unclear.

Previously, the Garuda Indonesia Employee Union (Sekarga) together with the Garuda Pilots Association (APG) and the Garuda Indonesia Cabin Crew Association (IKAGI) had asked SOE Minister Erick Thohir to help rescue Garuda Indonesia (GIAA) especially in terms of debt restructuring.

Meanwhile Coordinator of the Joint Secretary of the United Garuda Indonesia, Tomy Tampatty, hopes that the government can choose option 1 or without PKPU as the support from Commission VI of the DPR RI (House of Representatives) related to the rescue of Garuda Indonesia in terms of debt restructuring.

Tomy also asked Minister Erick Thohir to maintain the continuity of Garuda Indonesia by making the best decisions on all agenda items of the General Meeting of Shareholders (GMS) which will be held on August 13, 2021. Management is considered to have misunderstood the problems that occurred within Garuda Indonesia.

“They only focus on financial issues by carrying out a financial reengineering process, including debt restructuring as the main pillar. Meanwhile, the main root cause of Garuda Indonesia tends to be neglected. Management often moves short-term problems into long-term problems. In fact, the business fundamentals for profit creation are far more important,” he concluded. [antaranews/photo special]