Mrs. Sri Mulyani, PMN Money For Garuda Indonesia Rp7.5 Trillion When Will It Disburse?

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) has made various efforts to save Garuda Indonesia so that the national airline can still 'fly'. One of them is by negotiating with the Ministry of Finance to disburse a bailout amounting to Rp7.5 trillion for PT Garuda Indonesia (Persero) Tbk.

Deputy Minister of SOEs II Kartika Wirjoatmodjo said that this effort was carried out as a form of restructuring support for companies facing debt problems. national economy (IP-PEN) in 2020 prepared for the state-owned airline.

"In terms of funding, actually there is still an IP-PEN program of Rp. 7.5 trillion which is still in a temporary account at the Ministry of Finance. In the beginning of 2020, it was Rp. 8.5 trillion, which had disbursed Rp. 1 trillion," he said in a meeting with Commission VI DPR, last Tuesday, November 9th.

For your information, the provision of bailout funds has been approved in the form of a mandatory convertible bond or MCB. The mandatory convertible bond agreement or OWK was signed by Garuda Indonesia in 2020 with PT Sarana Multi Infrastruktur as the investment implementer from the Ministry of Finance.

The value and average is Rp. 8.5 trillion. In early 2021, the government disbursed a bailout fund of Rp. 1 trillion.

Meanwhile, in order to disburse Garuda's bailout funds for the next phase, the company needs to meet various requirements and parameters. One of them is the improvement of company performance.

"However, the parameters cannot be met and we will negotiate Rp7.5 trillion with the Ministry of Finance, basically this Rp7.5 trillion can be negotiated with the parameters and the scheme. Because with the parameters and schemes in 2020 nothing has been met," he explained.

"We are negotiating how we can use the IP-PEN account that has been disbursed but has not been utilized, but of course with a different scheme and KPI. Of course we ask for support," he continued.

Tiko said that Garuda needed this funding to take legal proceedings with lessors and creditors. Because creditors need the Government's commitment to support Garuda so that it can operate during the renegotiation process in the next four to five months. "The hope is 90 million US dollars for the legal process. Because at the beginning there was a token from the government to show commitment to solving the problem. But the rest was disbursed after the process restructuring is agreed. So it is conditional. If they agree to reduce their debt, reduce leasing costs, then the government will commit to adding new capital. This will be conditional depending on negotiations. We need tokens to keep Garuda flying, "he said.