Company With Temporary PKPU Status, Garuda Indonesia Boss Irfan Setiaputra: This Is Not Bankrupt

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - PT Garuda Indonesia (Persero) is officially in a temporary Debt Payment Obligation (PKPU) status. President Director of PT Garuda Indonesia Irfan Setiaputra emphasized that the company's temporary PKPU status does not mean that Garuda Indonesia is in bankruptcy.

As is known, the Central Jakarta District Court has determined Garuda Indonesia to have a temporary PKPU status. The PKPU application came from PT Mitra Buana Koorporindo which was submitted to the Central Jakarta Court on October 22. This case is registered with case number 425/Pdt.Sus-PKPU/2021/PN Niaga Jkt.Pst.

"We need to understand together that the PKPU process is not a bankruptcy process. This process provides space for Garuda to negotiate with creditors within the legal corridor," he said in a virtual press conference, Thursday, December 9.

Furthermore, Irfan said that the provisional PKPU decision also gives the company 45 days to submit a peace proposal that includes a plan to restructure business obligations to creditors.

"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.

Irfan also guaranteed that as long as the PKPU process is running, 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.

"No operations have changed, we ensure that operations continue as they are currently being carried out regardless of this PKPU. We will continue to make improvements that can be given," he said.

In addition, Irfan also expressed his gratitude to the government for providing support so that the company can survive. He also conveyed his gratitude and appreciation to Garuda Indonesia employees who have worked hard in challenging times.

"Furthermore, we will also continue to establish communication with creditors and hope for good cooperation and support," he said.