Warning From Erick Thohir: If The Garuda Indonesia Problem Is Not Resolved, There Will Be Parties Who Are Ready To Monopolize The Aviation Industry

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir has warned of a national aviation monopoly by the domestic aviation industry if Garuda Indonesia's problems are not resolved.

According to Erick, the ongoing process of Postponing Debt Payment Obligations (PKPU) is the key to preventing monopolies in the aviation industry.

As is known, currently, the process of restructuring and negotiating the debt of state-owned issuers of IDR 189 trillion through the PKPU scheme is still ongoing.

"Well, the Garuda case is an old case too, but the problem is we are willing or not if Garuda is not resolved, finally there is a national aviation monopoly," said Erick when met at the Atma Jaya University area, Jakarta, Wednesday, January 26.

According to Erick, a monopoly by one of the national airlines will have an impact on a number of business sectors. Where, no, the tourism sector cannot develop until there is no new place for micro, small and medium enterprises (MSMEs).

"(Airline monopoly) which eventually became expensive tickets. If the tickets become expensive, it means the tourism industry is not developing, if the tourism industry is not developing, MSMEs also have no place for new income," he said.

On the other hand, Erick said the Ministry of SOEs is also targeting the restructuring of Garuda to reach more than 50 percent. The percentage reflects the agreement of the lessor or the aircraft charter company to provide restructuring approval.

Furthermore, Erick said that if the restructuring target of at least 50 percent is achieved, the state-owned airline will enter the financial recovery phase. To achieve the target, the Ministry of SOEs must obtain the approval of seven major lessors.

Erick said that the approval of seven lessors would be the majority because they were able to represent a figure of 50 percent according to the target.

Until the third week of January 2022, only four lessors have given the approval. Meanwhile, the other three lessors are at the negotiation stage. In total there are 35 lessors targeted by the government.

"Of the 35, there are four that seem to have agreed. Well, the good thing is, these four lessors are big lessors," he explained.