Rupiah Touring Weakens, Garuda Boss: Makes Business Slip

President Director of Garuda Indonesia Irfan Setiaputra. (Photo: Mery Handayani/VOI)

JAKARTA - President Director of Garuda Indonesia Irfan Setiaputra revealed that the weakening of the rupiah exchange rate against the United States (US) dollar had an impact on the business.

This is because the cost of Garuda's activities mostly uses US dollars.

For information, in the past few weeks, the rupiah exchange rate against the US dollar has continued to weaken. Even now it has penetrated to the level of Rp. 16,400.

"(The weakening of the rupiah) must have an impact (on business). But yes, this is a fact we have to face. We don't need to complain, right," he said when met at Danareksa Tower, Jakarta, Friday, June 21.

Furthermore, Irfan emphasized that the weakening of the rupiah against the US dollar must still be faced by working harder.

"Maybe there's a slip here and there, but it's part of the business," he said.

Previously, Irfan said, along with the weakening of the rupiah exchange rate against the US dollar, the value of the business burden swelled and suppressed the company's income.

What is clear is that the exchange rate, it's really nervous, we have a big dollar component. This is if the exchange rate weakens and the exchange rate continues to be battered. We get a lot of rupiah. You don't charge dollars, right?," he said.

In addition to the exchange rate, said Irfan, there are other components that also reduce the revenue of the airline industry, namely avtur fuel which has also increased.

Therefore, Irfan hopes that the Upper Limit Tariff (TBA) policy for airplane ticket prices can be adjusted.

Given, the last time the TBA was updated was when the rupiah exchange rate was at the level of Rp. 13,000 per US dollar.

"We ask for a revision of the TBA. Just remember that TBA in the last one was based on Rp. 13,000 dollars, right. So you don't have to look at this, we also don't fit the costs anymore," he explained.