ER
STATE-Owned Enterprises (BUMN) Ministry through Minister Erick Thohir has welcomed the resumption of trading in flag carrier Garuda Indonesia’s stock at the Indonesia Stock Exchange (IDX) as a good omen for the airline’s recovery.
With the GIAA ticker code appearing on IDX, the resumption of trading in the airline’s stock on Tuesday (01/02) demonstrated public trust in the joint efforts made by the government and the airline’s management to restructure and rescue the company, he said.
“Restructuring efforts and (commitment to) fulfill all conditions for settlement agreements are good news for all of us. We hope (the stock trade resumption) will provide a foothold to investors to continue investing in GIAA,” Thohir added, according to a statement issued here on Tuesday (01/02).
The minister expressed his gratitude over Garuda Indonesia continuing to transform and improve in several aspects, such as management, finance, and services, which will enable the flag carrier to recover and “fly higher.”
Trading in Garuda Indonesia stock resumed on Tuesday following a 16-month suspension announced by the Indonesia Stock Exchange on June 18, 2021. The airline’s stock last traded on June 17, 2021.
On Tuesday, GIAA shares opened at IDR204 and surged quickly to auto reject on the upper limit at IDR224. The airline stock declined steadily thereafter to IDR200 before rebounding slightly to IDR202 at the close of trade.
Last September, Finance Minister Sri Mulyani Indrawati confirmed that the government has provided IDR7.5 trillion in funding in the form of state equity participation to Garuda Indonesia to meet the needs of maintenance, restoration, maintenance reserves, and additional working capital through a preemptive rights scheme.
During a meeting with Commission XI of the House of Representatives (DPR) on September 22, 2022, Indrawati had said that the state equity was given after an agreement with creditors was ratified following its approval by authorities.
According to the plan, as much as IDR4.5 trillion, or 60% of the funds allocated to Garuda Indonesia, will be used for restoration and management and IDR3 trillion — that is, the remaining 40% — will be used as additional working capital. [antaranews/photo special]
