Loss And Abandoned By Independent Commissioner, Garuda Indonesia Strengthens Non Aviation Business

JAKARTA - Based on the information disclosure of the Indonesia Stock Exchange (IDX), Garuda Indonesia's revenue was only US$1.49 billion by the end of 2020 or a drop of 67.40 percent compared to the previous year's period.

This condition made the company's net loss from initially 38.94 million US dollars in 2019 swell to 2.44 billion US dollars last year. The government then chose the option to restructure in order to save the financial condition of the state-owned airline.

The Ministry of SOEs opens the option of injecting funds through the State Investment (PMN) as one of the strategies to settle the company's debts. However, these efforts do not seem optimal.

The financial condition of PT Garuda Indonesia Tbk (GIAA) which is in dire straits has forced its two commissioners to resign, namely Peter F Gontha as commissioner representing public shareholders and Yenny Wahid, daughter of former Indonesian President Gus Dur.

Yenny Wahid stated that he had resigned from the position of independent commissioner of PT Garuda Indonesia (Persero) to reduce costs incurred by the company considering that the state-owned airline was experiencing financial difficulties due to the COVID-19 pandemic.

"I have decided to resign from my position as an independent commissioner," said Yenny Wahid through his Instagram account.

Yenny Wahid admitted that the decision to resign was not an easy thing, but the choice to resign was a small effort to save Garuda Indonesia's finances so that it could still be airborne.

"Hopefully this will be useful for Garuda so that there can be more cost efficiency, cost savings in the future so that Garuda can continue to fly with might," said Yenny Wahid as quoted by ANTARA, Tuesday, August 17.

Garuda Indonesia and The Goods Dept. release an exclusive collection

Garuda is trying to strengthen its non-trading business to reduce losses. In order to celebrate the 76th anniversary of Indonesian Independence, the state-owned airline Garuda Indonesia together with The Goods Dept. launched thematic merchandise that carries the vintage concept of the classic Garuda Indonesia logo from 1970-1985.

The collection consists of a unisex bomber jacket with keychain detail on the left sleeve pocket, a tote bag with two choices of different models and colors, a duffel bag that can be used for traveling, and other accessories that also have interesting details.

President Director of Garuda Indonesia, Irfan Setiaputra, said that the launch of this exclusive product is one part of Garuda Indonesia's efforts to support the presence and proud movement of superior products in the country or Proudly Made in Indonesia (BBI).

"Through collaboration with The Goods Dept, which is known as one of the best local fashion retail brands that presents various fashion products made by the nation's children, it is hoped that these exclusive products can not only inspire the spirit of nationalism for all Indonesian people, but can also inspire and explore the potential of the nation's children in producing the best work," said Irfan.

Irfan also said that by presenting the vintage feel of the Garuda Indonesia logo, the launch of this collection could at the same time represent the positive role and contribution of Garuda Indonesia in the nation's history, particularly in bridging the needs of people's mobility and logistics transportation to all parts of Indonesia.