Revealed: Since 2014, The Number Of Garuda Indonesia Employees Is Decreasing Every Year, From 17,197 People To Now 14,065

JAKARTA - PT Garuda Indonesia (Persero) Tbk is experiencing financial difficulties due to the COVID-19 pandemic and also due to a debt burden of IDR 70 trillion. Currently, the restructuring process through Postponement of Debt Payment Obligations (PKPU) continues. Reducing employees as a way to save operating costs was also carried out by the company.

This state-owned airline is reducing employees with an early retirement program. The early retirement offer, which lasts until June 19, 2021, offers two stages and is attended by 1,691 employees.

This step is also followed by the company's plan to reduce the number of aircraft operating. Currently, only about 40 Garuda aircraft are operating.

Citing the company's financial reports, the number of Garuda Indonesia employees has decreased by 2,727 people from 2014 to 30 September 2021. A total of 14,065 Garuda Indonesia employees and their subsidiaries (Garuda Group) as of 30 September 2021.

The number of employees of the Garuda Group was recorded at 17,197 people in 2014. Meanwhile, in 2015, the number of employees fell to 16,792 people. This number has decreased again to 16,735 people in 2016. The number of employees continues to decline every year, to 16,551 in 2017.

In 2018, the total number of employees was 16,336 people. In 2019, the number continued to fall to 15,623 people. While in 2020, the number will be 14,730 people.

Regarding the news that there will be mass layoffs (PHK) this year, the President Director of PT Garuda Indonesia, Irfan Setiaputra, denied the issue. According to him, currently, management is focusing on the process of Delaying Debt Payment Obligations (PKPU).

"PT Garuda Indonesia (Persero) Tbk (Garuda) is still focusing on undergoing the PKPU process to obtain the best agreement in settling business obligations with creditors", he said in a written statement, Wednesday, February 2.

While regarding the news of the meeting between the Ministry of Manpower, Irfan said that until now there has been no agenda for the meeting related to the adjustment of the number of employees.

"We can convey that Garuda has not yet had a meeting agenda with the Ministry of Manpower regarding the adjustment of the number of employees", he explained.

In addition, Irfan emphasized that the PKPU process that is currently being carried out by Garuda and all stakeholders is not a bankruptcy or bankruptcy process, but a restructuring process that is carried out within the legal corridor according to the PKPU mechanism.

"In this PKPU process, Garuda Indonesia also continues to establish intensive communication with all creditors, wherein the process, Garuda has also received positive responses from several creditors, including aircraft lessors in the negotiation process to reach the best agreement for the settlement of business obligations", he said.

Furthermore, Irfan also explained that to restore performance which is currently being optimized, Garuda continues to be committed to prioritizing the interests of its employees in this challenging time.

"In line with our plans and efforts to become a strong business entity in the future. All employment policies and decisions that have been taken by Garuda, of course, refer to the applicable laws and regulations, as well as based on the constructive communication that we promote with employees", he said.

Previously reported, the issue of layoffs was raised by the Director-General of Industrial Relations and Labor Social Security (PHI-Jamsos) of the Ministry of Manpower, Indah Anggoro Putri. She said that the management of Garuda and AirAsia will meet the Minister of Manpower regarding the strategic steps that must be taken.

The plan is for a meeting between the Ministry of Manpower, Garuda Indonesia, and AirAsia to be held on Thursday, February 3, 2022.

"Garuda and AirAsia are coordinating with me because they want to go bankrupt. This means that there are potential business problems that have an impact on employment problems, but the Ministry of Manpower is ready to help mediate, such as Pertamina", said Indah to reporters, Monday, January 31.