Ensure Garuda Indonesia Escapes Bankruptcy, Deputy Minister Of BUMN: Healthy Cash Flow, Immediately Increase Capital In The Capital Market

Garuda Indonesia aircraft. (Photo: Antara)

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) has confirmed that PT Garuda Indonesia (Persero) Tbk has escaped bankruptcy. This is also in line with the homologation decision in the trial for the suspension of debt payment obligations (PKPU).

Deputy Minister of State-Owned Enterprises, Kartika Wirjoatmodjo, explained that Garuda Indonesia can certainly escape from bankruptcy due to the PKPU decision. According to her, bankruptcy occurs if the creditor carries out the process of demanding bankruptcy in the PKPU trial.

"In terms of PKPU, bankruptcies can occur if the lender demands bankruptcy. Bankruptcy is definitely not, because there has been a PKPU decision that provides for debt restructuring", she said in a virtual press conference, Tuesday, June 28.

Even so, Tiko as Kartika is familiar with said that there was still work to be done, namely to restore Garuda's balance sheet.

To improve the balance sheet, said Tiko, the Ministry of SOEs and management of Garuda Indonesia will conduct a rights issue twice.

"With the two rights issues, Garuda is only really healthy on the balance sheet. But with the first rights issue, the balance sheet has started to be healthy", she said.

However, Tiko continued, from operational cash flow, Garuda has been declared healthy.

"But operationally, cash flow is healthy from now on, because it uses power body hours and reduced electricity, as well as optimizing income earlier, but the balance sheet must be completed first", she explained.