Details Of Garuda Indonesia Employee Salary Arrears Worth Rp327 Billion, How Much Are Flight Attendants Charged?

JAKARTA – The national airline PT Garuda Indonesia Tbk. reported that the company had arrears in employee salaries of US$23 million or equivalent to Rp328 billion (exchange rate of Rp14,263) as of December 2020.

This emerged when the state-owned company provided information disclosure to the Indonesia Stock Exchange (IDX).

"The estimated amount of salary benefits currently deferred or unpaid as of December 31 is 23 million US dollars," reads the document released on Wednesday, June 9.

Furthermore, the business entity with the ticker issuer GIAA also revealed that the performance pressures due to the pandemic caused the company to make several adjustments to the remuneration payments for all employee groups.

In detail, the salary delays imposed are 50 percent for directors and commissioners, 30 percent for vice president, captain, first office and flight service manager, and 25 percent for senior managers.

Then, flight attendants (stewardess and flight attendants), experts and managers 20 percent, duty managers and supervisors 15 percent, and staff and students 10 percent.

"The source of the company's cash funding to fund the company's operational sustainability 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 as well as lessors will certainly contribute to maintaining the sustainability of the company's operations," said Garuda.

Meanwhile, another step taken by Garuda Indonesia to maintain financial performance is by expediting contract settlement for employees with PKWT status.

"The company also implements an accelerated pension program for employees with registration criteria of 45 years and over which will be implemented in 2020, and a policy of adjusting the work mechanism for employees both working from home (WFH) and working in the office (work from office). /WFO)," explained one of the State-Owned Enterprises.