Garuda Indonesia Focuses On Working On Domestic Routes, Erick Thohir: Local Tourists Contribute IDR 1,400 Trillion, Foreign Only IDR 300 Trillion

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir will focus two state-owned airlines PT Garuda Indonesia (Persero) Tbk (GIAA) and Citilink on domestic flight routes.

This is because the domestic market is still so large compared to international flights. Moreover, due to the COVID-19 pandemic, the government is still limiting foreign tourist visits.

Erick said the plan had been communicated to the company's management from November to January 2019, or before the pandemic broke out in the country. Because, from the existing flight data, as many as 78 percent of passengers use aircraft services to travel the region.

"Local tourists (contributions) reached Rp. 1,400 trillion, while foreign tourists were only 22 percent or around Rp. 300 trillion. If we do business, this is clearly the market because Indonesia is also an archipelagic country," he said at a press conference at the Ministry of SOEs Building, Jakarta, Wednesday. , June 2nd.

Furthermore, Erick said that this step was the most realistic breakthrough to save the aviation industry amid the uncertainty of the COVID-19 pandemic. Moreover, the two airlines employ at least 1,300 pilots and cabin crew as well as 2,300 employees.

In addition, said Erick, the government is grateful that Indonesia's geographical location, which is an archipelagic country, is a blessing in itself for the aviation industry in the country. Meanwhile, according to Erick, state-owned airlines in other countries are in more dire condition than Garuda Indonesia and Citilink.

"So we should be grateful that we just have to find a way so that Garuda can be sustainable because Indonesia is an archipelagic country and the domestic market is strong, so it must be an opportunity," he said.

The COVID-19 pandemic, which has been present since 2020, has almost paralyzed the entire transportation industry. Erick said, the movement restriction policy caused airport capacity throughout Indonesia to be filled only 15 percent and had increased to 32 percent. As for trains, the occupancy rate is only 10 to 15 percent.

"We must not shut up or remain silent and must make breakthroughs and make improvements," he said.