Fahri Hamzah Says Garuda Indonesia Should Not Go Bankrupt Like Merpati: That's Why It's Better To Sell It To The Public

JAKARTA - PT Garuda Indonesia (Persero) Tbk (GIAA) is on the verge of bankruptcy. Not only bearing debts of up to IDR 70 trillion but Garuda Indonesia's condition was also worsened by the declining passenger occupancy due to the COVID-19 pandemic. To support the rescue of Garuda Indonesia, former Deputy Speaker of the House of Representatives, Fahri Hamzah, proposed that the government open an option to sell this national airline.

Instead of making rescue efforts, according to Fahri, it is better to sell them to the public. This is done so that Garuda Indonesia does not continue to lose money and does not burden the state's finances.

As is known, due to the COVID-19 pandemic, Garuda's occupancy has plummeted to a loss of $ 100 million or IDR 1.4 trillion per month.

"It's been released, but the sales are prioritized to employees only. Whether it's still called Garuda Indonesia or Garuda Air, it's still called a flag carrier, but the pattern is held by the Indonesian people, not the state anymore", he said in his statement, Tuesday, June 15.

The deputy chairman of the Gelombang Rakyat Party (Gelora) Indonesia said that if the management of Garuda Indonesia was handed over to the people, the management would be better. In addition, if it develops rapidly, it can create pride for the Indonesian state and nation at the international level, because it can compete with airlines in the world.

"It doesn't have to be a state actor, there are many young people who can make proud abroad. Who would have thought there was a child from my village in Lombok, his name was Then Zohri suddenly surprised the world that he had a running speed that could beat other runners from all over the world. Proud of him, can achieve", he said.

This means, said Fahri, that many human resources can make the Indonesian nation and state proud, not necessarily countries that go down directly, as long as the people are allowed to manage Garuda Indonesia.

"The story is that those who bought airplanes for Garuda first did not use state money either, but donations from the people of Aceh. The state cannot afford it, while we need to fly fast because we are an archipelagic country", he said.

Fahri hopes that Garuda Indonesia will not suffer the same fate as Merpati Airlines, a state-owned airline that collapsed several years ago due to mismanagement and continued losses.

According to Fahri, the government needs to follow the example of the management of Singapore Airlines (Singapore), Qatar Airways (Qatar), Etihad, and Emirates (United Arab Emirates) which eliminates state involvement in the management of airlines in their country.

"So what's wrong, if Garuda is now owned by the Indonesian people. Don't pretend that only the state can make this republic proud, the people can too. The government only needs to show the market mechanism", he said.

Four rescue options from the Ministry of SOEs

The government through the Ministry of SOEs offers four options to save Garuda Indonesia. The first option, the government will continue to support Garuda through loans or equity injections.

The second option, the government will use the bankruptcy protection law to restructure Garuda's obligations, such as debts, leases, and employment contracts.

The third option, the government will restructure Garuda and establish a new national airline company. The fourth option is that Garuda Indonesia will be liquidated and the private sector left to fill the void.

House of Representatives encourages Garuda's financial audit

Commission VI of the House of Representatives encourages a financial audit to be carried out on Garuda airlines. This step follows Garuda, which continues to experience losses due to the decline in occupancy during the COVID-19 pandemic so that the losses incurred have reached $ 100 million or IDR 1.4 trillion per month. Not to mention, Garuda also bears debts of up to IDR 70 trillion.

Chairman of the House of Representatives Commission VI, Faisol Riza, urged a forensic audit of Garuda's financial statements to be carried out immediately. He said the audit was carried out by involving law enforcement and authorized institutions.

"Regarding the rescue of Garuda Indonesia, I look more at the legal strategy. Starting with a forensic audit of the financial statements of PT. Garuda Indonesia. By involving the BPK, the KPK, the Attorney General's Office, other authorized institutions", said Faisol Riza in a written statement to reporters in Jakarta, Friday, June 4.

According to Faisol, through this legal strategy, all indications of the cause of Garuda's bankruptcy will be easier to inventory. Including allegations of corruption that may have contributed to the cause. So, it can be clearly identified.

"So it will be easier to do an inventory of problems later, on the contrary, if there is corruption within Garuda we will know it clearly and brightly," he said.

Regarding efforts to rescue Garuda Indonesia carried out by the Government through the Ministry of SOEs, said Faisol, as long as it is by applicable laws and legal provisions, the House of Representatives of Commission VI will continue to support it.

"Basically, we, the House of Representatives of Commission VI, fully support efforts to save Garuda Indonesia airline, as long as the efforts are correct and by applicable laws and legal provisions", he said.