Garuda Indonesia Frankly Can't Pay Debts To Pertamina And Angkasa Pura, Its Value Is Tens Of Trillions!

JAKARTA - PT Garuda Indonesia Tbk. report if the company has not been able to fulfill its financial obligations to strategic business partners, such as PT Pertamina for purchasing fuel, PT Angkasa Pura I and PT Angkasa Pura II as airport operators.

This was disclosed by Garuda when submitting a consolidated financial report for the 2020 period to the Indonesia Stock Exchange (IDX) at the end of last week.

"According to the issuer codenamed GIAA, over the past year the impact of the COVID-19 pandemic, followed by travel restrictions, has caused a significant reduction in air travel, and has had an adverse impact on operations and liquidity," the report said.

Just so you know, Garuda Indonesia and Citilink (a subsidiary of Garuda) are said to have an obligation to pay the state oil and gas company Pertamina worth more than 716 million US dollars (around Rp. 10 trillion). This figure consists of debts of IDR 8.21 trillion and USD 133.51 million.

The obligation was finally agreed by both parties to be reviewed, aka restructuring.

"The Company and CI (PT Citilink Indonesia) signed a debt restructuring agreement with Pertamina with a restructuring period of three years starting from December 31, 2020 to December 31, 2023," said GIAA management.

Then, on 30 December 2020, Garuda also signed a debt restructuring agreement with Angkasa Pura I and II of 7.96 million US dollars consisting of 112.19 million US dollars and 10,413 US dollars with a restructuring period of three years starting from 31 December 2020 until by December 31, 2023.

Broadly speaking, the performance of this national flag carrier during the past year posted a loss of US$2.5 billion or equivalent to Rp. 36.2 trillion (exchange rate of Rp. 14,503).

Garuda said the group's current liabilities exceeded its current assets of US$3.8 billion and the group had an equity deficiency of US$1.9 billion.

The difficult situation faced by GIAA is also reflected in the operating income sector, which was recorded at US$1.4 billion. This achievement is in free fall compared to 2019 with a value of 4.5 billion US dollars