Garuda Indonesia Is Outspoken About Its Financial Destruction: Employee Salary Arrears of IDR 327 Billion, Pilot Gets the Biggest

JAKARTA - PT Garuda Indonesia Tbk has finally opened up about their financial ruin which is being hit by a debt of IDR 70 trillion. The company with the stock code GIAA is even delaying the salaries of its employees by an incredible amount, hundreds of billions.

In an information disclosure on the Indonesia Stock Exchange (IDX) website, quoted on Wednesday, June 9, Garuda Indonesia management stated that it had not paid the employee salary allowance of $ 23 million as of December 31, 2020. If in rupiah with the exchange rate of IDR 14,252 per US dollar, then the value is equivalent to IDR 327.75 billion.

"The estimate of the number of salary allowances currently deferred/unpaid as of December 31 is $ 23 million", Garuda Indonesia management wrote.

In response to the performance pressure due to the COVID-19 pandemic, starting from April-November 2020 Garuda Indonesia has postponed the payment of income in 2020 with the following amount:

1. Directors and Commissioners: 50 percent

2. Vice President, Captain, First Officer, and Flight Service Manager: 30 percent

3. Senior Manager: 25 percent

4. Flight Attendant, Expert, and Manager: 20 percent

5. Duty Manager and Supervisor: 15 percent

6. Staff (Analyst, Officer, or equivalent) and Students: 10 percent

Not only that, but Garuda Indonesia is also forced to accelerate the completion of contracts for employees with contract/PKWT status, accelerate the pension program for employees with registrant criteria of 45 years and over which will be implemented in 2020, and the policy of adjusting the working mechanism for employees (WFH/WFO).

"The source of the company's cash funding to fund the sustainability of the company's operations in the short term comes from the company's operating income. In addition, the agreement to restructure business obligations between the company and several SOEs and also lessors will certainly contribute to maintaining the sustainability of the company's operations", explained the management of this state-owned airline