Member Of DPR PKS Faction: Erick Thohir Must Move Quickly To Form A Team To Save Garuda Indonesia
Illustration. (Photo: Doc. Garuda Indonesia)

JAKARTA - Member of Commission VI of the Indonesian House of Representatives Amin Ak said that it is necessary to immediately take swift action related to restructuring and renegotiation in order to save the national airline Garuda Indonesia.

"The government must move quickly in rescuing Garuda Indonesia so it doesn't sink further," said Amin Ak in a written statement in Jakarta, quoted from Antara, Wednesday, June 23.

According to him, the two steps that must be rushed are investigative audits and debt restructuring through renegotiation with the lessor or the company that leases the aircraft.

The company's debt, said Amin, which now reaches around Rp. 70 trillion and is estimated to continue to grow, will make it difficult for Garuda Indonesia to survive if its rescue strategy is allowed to drag on.

"Minister Erick must move quickly and not hesitate to form a reliable restructuring team and ask the Supreme Audit Agency (BPK) to conduct an investigative audit of Garuda," he said.

In addition, he said that there should be legal consequences if it is proven that the alleged mark-up committed by the management of the Garuda company in the previous era was proven.

For this reason, he said, the BPK must conduct an independent and professional investigative audit to find the problems surrounding the airline.

"The legal consequences for the old management must be enforced because the moral hazard that was carried out was very detrimental to the country and made Garuda as a national pride airline suffer from problems like now," he explained.

He also said it was urgent to reduce the number of planes so that Garuda would not continue to be burdened with debt due to rental fees and fines.

Amin suggested that downsizing should be maintained in the next few years even though market conditions began to return to normal so that Garuda could benefit more from the efficiency that was carried out to restore its financial condition.

Previously, Commission VI of the DPR RI gave a number of recommendations to save PT Garuda Indonesia (Persero) Tbk which was experiencing financial difficulties, one of which was through company restructuring.

"Commission VI of the DPR RI has asked PT Garuda Indonesia to finalize rescue options related to the restructuring of Garuda," said Deputy Chairman of Commission VI of the DPR, Mohamad Hekal, during a Hearing Meeting (RDP) with the Garuda Indonesia board of directors in Jakarta, Monday, June 21.

In the RDP, the President Director of PT Garuda Indonesia, Irfan Setiaputra, explained the strategic plans that the company will carry out in order to save the company.

Hekal said Commission VI also asked Garuda Indonesia to coordinate with the Ministry of SOEs and conduct a quick and maximum evaluation to minimize operational losses.

In addition, Commission VI also requested that Garuda Indonesia renegotiate with the aircraft leasing company (lessor), and restructure the company's debt.

"Also settlements with employees are in accordance with the applicable law. This must be done so that losses do not continue to occur," he said.

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