Garuda Indonesia Is In Negotiation With Lessors And Creditors, Observer: People, Don't Give Difficult Auras

Garuda Indonesia aircraft. (Photo: Doc. Garuda Indonesia)

JAKARTA - State-owned Enterprises (BUMN) observer from the University of Indonesia Toto Pranoto invites all parties to support Garuda Indonesia's renegotiation with lessors (parties who lease or provide aircraft rental services) and creditors to the end.

"In my opinion, regarding Garuda, let them (the negotiator team) complete the renegotiation process with aircraft leasing providers or lessors and creditors to the end," said Toto in a Focus Group Discussion in Jakarta, quoted from Antara, Thursday, November 18.

Toto also appealed to all parties and the Indonesian people not to give auras that more or less do not support the current Garuda renegotiation process.

If negotiations are ongoing, it would be better not to have unsupportive news. The Garuda negotiation process has not been completed and is currently underway, so if there is an opinion or news that does not support it, it can reduce the confidence of creditors and lessors regarding the seriousness of the government and the Indonesian people to resolve the Garuda problem.

"So don't create auras that lead or can complicate the negotiation process between Garuda Indonesia and its creditors and lessors," said Toto.

The same thing was conveyed by legal observer Nien Rafles Siregar who appealed to the Indonesian people and all parties to provide flexibility to Garuda Indonesia and the negotiating team in conducting restructuring and renegotiations.

In general, the world's major companies and airlines are currently experiencing difficulties due to the impact of the COVID-19 pandemic.

"We must provide flexibility to restructure both outside and through the courts in the context of delaying debt payment obligations or PKPU," said Rafles.

Consider this PKPU, he continued, a kind of effort to avoid the worst and give a new breath. If this happens, then a complete restructuring will occur to everyone, from lessors to suppliers and so on.

"If this can be maximized, I think it would be very good," he said.

Previously, the Ministry of SOEs was fighting for the negotiation process with aircraft leasing providers or lessors and owners of receivables related to the rescue of Garuda Indonesia.

Special Staff to the Minister of SOEs, Arya Sinulingga, said that negotiations with the debt holders were the expected way. If this is successful then Garuda will still be able to run. Currently the Ministry of SOEs is focusing and prioritizing on negotiating options with lessors and Garuda receivable owners.