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Garuda Indonesia Has Asked to Defer Payment of Debt Once More
On Wednesday, May 11, 2022, Garuda announced the process to defer its debt payment was filed with the Commercial Court of the Central Jakarta District. The application for a time extension takes into account the claims verification that is presently occurring. The method for the peace plan is still being discussed with the company’s creditors, according to Antara.com on Wednesday, May 11, 2022. Garuda Indonesia additionally extended the PKPU to meet and accommodate many creditors’ requirements.
Garuda Indonesia President Director Irfan Setiaputra indicated in an official statement that the extension of the PKPU would provide a better opportunity for Garuda and all creditors to achieve an agreement.
“Just as PKPU strives for a win-win solution for all parties concerned,” he stated, “We feel that this process must be carried out with caution and moderation.”
Garuda Indonesia committed to making the most of the opportunity given the 30-day timeframe. Irfan Setiaputra also claimed that the PKPU that was submitted this time will be the final extension request. “We appreciate creditors’ patience and cooperation throughout the PKPU process, which has gone successfully thus far,” he said. “This is crucial evidence that the communication process so far has revealed increasingly strong optimism about Garuda’s business prospects going forward,” he remarked once more.
Garuda is dedicated to maintaining normal passenger and cargo flight operations during the PKPU process. ” Throughout the first quarter of 2022, he asserted, the GIAA-coded issuer’s performance continued to demonstrate positive gains.
This is also assisted by the liberalization of travel mobility rules, which encourages an increase in public interest in flying. “Moreover, the operation of Umrah flight services from a number of important Indonesian cities, as well as the deployment of Hajj flights, will be a positive signal in our efforts to speed performance recovery, which we will continue to optimize,” Irfan added.
Garuda Indonesia’s Current Situation
PT Garuda Indonesia Tbk situation is still dire. In recent years, this government-owned airline has continued to lose money. Debt continues to mount, and the interest load is increasing. The decline of this flag carrier airline, which is currently dismal, is alleged to be the result of past corruption and business blunders by Garuda’s senior leaders. Rather than liquidating Garuda, the government decided to save the airline with APBN funds via the State Capital Investment (PMN) injection scheme. The House of Representatives Commission VI’s Garuda Rescue Committee has also backed the Garuda Indonesia rescue plan. Garuda will receive Rp 7.5 trillion in state funds from the 2022 State Budget. The Rp 7.5 trillion ($511 million) sum will be utilized to address very significant and urgent operational needs, such as salaries for staff who are still owed, maintenance, planes, and so on.
In a statement released on Thursday (12/5/2022), SOE Minister Erick Thohir said, “We are thankful and grateful that the cooperation of the DPR Commission VI committee is very relevant in efforts to restore Garuda.” After the approval of the APBN money disbursement, Erick Thohir stated that the Ministry of SOEs and Garuda Indonesia would implement the House of Representatives’ recommendations, beginning with fixing bad corporate governance and setting a clear timeframe and benchmarks. “The agreement between Commission VI, the Ministry of BUMN, and Garuda Indonesia in upgrading Garuda is a good teamwork and synergy,” he stated.
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