Deputy Erick Thohir Optimistic PKPU Garuda Indonesia Will Be Completed In 180 Days

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo is optimistic that the process of Postponing Garuda Indonesia's Debt Payment Obligation (PKPU) can be achieved soon. In fact, faster than the given time limit of 180 days.

As is known, PT Garuda Indonesia (Persero) Tbk entered its inaugural creditors' meeting in the PKPU process, Tuesday, December 21, 2021. This PKPU is expected to be a way for Garuda to reduce its debt burden which reached 9.8 billion US dollars.

Tiko, as he is known, said that this optimism also stems from the current condition where creditors do not have much choice in the midst of the sluggish airline business.

"If the maximum PKPU is 270 days, we will push it even if we can finish it in 180 days, until the middle of the year (2022)," he said, in Jakarta, Wednesday, December 22.

Furthermore, Tiko said the Ministry of SOEs together with the management of Garuda Indonesia had submitted a peace proposal to creditors and aircraft lessors. Therefore, he hopes that creditors will register bills in the near future.

"If they have registered, we will negotiate a peace proposal to reach a homologation agreement," he said.

For your information, Garuda has to deal with a total of 780 parties. It consists of 60 lessors, 20 government agencies, 28 BUMN and their affiliates, five state-owned banks and financial institutions and four private banks. Then, there are also five other financial institutions, 18 Garuda affiliates, 417 local vendors and 223 foreign vendors. Therefore, the PKPU process is expected to run smoothly.

Tiko said that the Ministry of State-Owned Enterprises continues to encourage the restructuring of Garuda's debt with the aim of rehabilitating the issuer codenamed GIAA. Although, Tiko admits, there is a possibility of bankruptcy in the PKPU process.

Threat of delisting

Not yet finished with the debt problem, Garuda is now facing a new problem, namely the threat of delisting or eliminating shares. However, said Tiko, delisting will occur if Garuda is declared bankrupt.

"Yes, if it is delisted, right, PKPU will lead to homologation. If the stock exchange is deemed not ideal, then it can be delisted. But we believe that after the homologation process it can be restored," he said.

As is known, previously the Indonesia Stock Exchange (IDX) issued a warning to remove Garuda's shares from the Indonesian stock exchange. IDX warnings are published on the main board with the Number Peng-00024/BEI.PP2/12-2021. Then, the Exchange Rule Number II concerning Delisting and Relisting of Shares on the Exchange.

The Exchange may write off the shares of a listed company if it experiences conditions, or events, which significantly negatively affect the business continuity of the listed company, either financially or legally, or on the continuity of the status of the listed company as a public company, and the company is unable to show any indications of significant recovery. adequate.

President Director of PT Garuda Indonesia (Persero) Tbk said Garuda Indonesia continues to give full attention to this matter. For this reason, his party is currently making the best efforts in accelerating performance.

"Currently, we are focusing on making the best efforts in accelerating performance recovery through the PKPU process in order to produce the best agreement in the settlement of business obligations, so that later Garuda shares can be traded as before," he said in a short message received by VOI, Tuesday, December 21.

According to the information submitted by the IDX, said Irfan, the delisting of shares is carried out after the stock suspension lasts at least 24 months from the announcement of the suspension. Meanwhile, Garuda Indonesia shares have been suspended for 6 months due to the delay in payment of the sukuk coupon.

"Therefore, we will further optimize PKPU's momentum in accelerating performance recovery steps to make Garuda Indonesia a healthier, more agile and competitive company," he said.