Garuda Indonesia Boss: Temporary PKPU Decision Opens Way To Accelerate Performance Recovery

Garuda Indonesia aircraft. (Irfan Meidianto/VOI)

JAKARTA - Garuda Indonesia President Director Irfan Setiaputra said the PKPU decision became an important foundation for Garuda Indonesia, which is currently carrying out restructuring and restoring the company's performance.

As is known, the Central Jakarta District Court granted the PKPU claim submitted by PT Mitra Buana Koorporindo (MBK) in the verdict hearing, Thursday, December 9, 2021.

"The Provisional PKPU's decision gives us 45 days to submit a peace proposal that contains a plan to restructure business obligations to creditors. We will coordinate with the Management Team under the supervision of the Supervisory Judge and ensure all related matters are carried out in accordance with applicable law," he said in a statement. press conference virtually, Thursday, December 9th.

Furthermore, Irfan said that the PKPU process was not a bankruptcy process. This process provides space for Garuda to negotiate with creditors within the legal corridor.

"We believe that this process clarifies Garuda's commitment to settle its business obligations and is an accelerated step to restore performance to realize Garuda as a business entity with strong business fundamentals in the future," he said.

Furthermore, Irfan said that he would continue to ensure the peace proposals submitted on an ongoing basis. The peace proposal will also be submitted in a balanced and proportional manner to the plaintiffs.

"With the support of all stakeholders and market conditions that are getting better as seen at the beginning of the fourth quarter of 2021, we are also optimistic that Garuda can realize a more sustainable performance recovery going forward," he said.

During the PKPU process, Garuda ensures that all aspects of flight operational activities will continue as normal. Garuda is committed to always optimizing the availability of safe and comfortable flight services to meet the mobility needs of the community, as well as cargo transportation for the national economic sector.

"We thank the Government for its ongoing support for efforts to restore the company's performance. Furthermore, we will also continue to establish communication with creditors and hope for good cooperation and support," he said.

Furthermore, Irfan expressed his gratitude to all Garuda employees who have worked hard in these challenging times. Including, to suppliers and business partners for their continuous support and enabling Garuda to operate and serve customers with high standards and quality of service.

"Every support for Garuda means a lot for us to continue to strive to make this airline more resilient and competitive in the future. We believe that together we can restore Garuda and fly it even higher as the flag carrier of the nation," he said.