PMN For Garuda Indonesia IDR 7.5 Trillion Approved By The DPR, Cair After Cassation Decree

Illustration (Photo: Doc. Antara)

JAKARTA - Commission XI of the DPR RI approved the participation of state capital (PMN) to PT Garuda Indonesia Tbk worth IDR 7.5 trillion which will be given after an cassation decision is made.

"Then I decided we agreed to, in accordance with that, agree," said Chairman of Commission XI DPR RI Kahar Muzakir as quoted by Antara, Monday, September 26.

Commission XI of the DPR RI also supports the restructuring and privatization of Garuda Indonesia in 2022, approved the ownership of government shares to remain a majority or a minimum of 51 percent, and maintain Red and White Shares as policy makers and decision makers.

"Restructuring, PMN, and the privatization of PT Garuda Indonesia Tbk are directed to support improving financial and operational performance and strengthening risk mitigation," he said.

PMN for Garuda Indonesia will be allocated for maintenance, restoration, fulfillment of maintenance reserves, and working capital accompanied by the completion of the company's strategic initiatives whose implementation will be monitored and outlined in the Key Performance Indicator (KPI).

KPI which is monitored includes financial performance, potential state revenue, PMN effectiveness, the benefits of optimizing the Rout network, and the benefits of economic impact.

The Ministry of Finance is also asked to monitor the achievements of KPI, achieve restructuring, and strategic initiatives, as well as financial and operational improvements carried out by Garuda Indonesia, and report it to Commission XI of the DPR RI quarterly.

Previously, the Director General of State Assets of the Ministry of Finance Rionald Silaban hoped that the rights issue and the conversion of Garuda shares could be completed in December 2022 after the Extraordinary General Meeting of Shareholders (EGMS) on October 14, 2022.