JAKARTA - The Joint Union (Sekber) of PT Garuda Indonesia Tbk sent a letter containing an application to President Joko Widodo to save the state-owned airline from the brink of bankruptcy.

"We can convey that the condition of the flag carrier Garuda Indonesia is currently on the verge of bankruptcy due to the impact of the COVID-19 pandemic, where this condition greatly affects operational activities," the Secretary of PT Garuda Indonesia wrote in his letter, quoted from Antara, Wednesday, July 14. .

The Secretary of PT Garuda Indonesia assessed that, in addition to the impact of the COVID-19 pandemic, there were past burdens related to the procurement of aircraft and engines carried out by directors in the past and also the impact of not being managed maximally by several potential business lines, including captive market corporate accounts or all official trips for state and non-state budget user agencies, cargo business lines, and charter business lines.

This employee union revealed that internally Garuda Indonesia had terminated employment (PHK), from a total of 7,900 employees in 2019, 2,000 employees had been reduced in 2020 and currently in 2021 it is in the process of layoffs which are planned to reduce more than 1,000 employees.

In addition to layoffs, employees who are still actively working are subject to deductions and delays in paying their salaries, all of which are a form of sacrifice as employees of Garuda Indonesia.

"Given the status of PT Garuda Indonesia (Persero) Tbk, which is a flag carrier whose share ownership is 60.54 percent owned by the state, we ask for support from President Joko Widodo to help save the continuity of the flag carrier Garuda Indonesia," he said.

This Sekber consists of the Garuda Employees Union (Sekarga), the Garuda Pilots Association (APG) and the Garuda Indonesia Cabin Crew Association (IKAGI). The combination of the three union agencies stated that Jokowi expected five supports, namely; The first is to support option 1 of the Ministry of SOEs to save the continuity of the GIAA coded company.

This rescue option can prevent the company from being bankrupted by creditors. This option has received full support from Commission VI of the DPR-RI during the RDP with the Garuda Directors on Thursday, June 2, 2021.

Second, requesting the President to support the rejection of option 2 of the Ministry of SOEs chosen by the Garuda Board of Directors. The reason for refusing option 2 is because the process goes through PKPU and has the potential to be bankrupt by creditors.

Third, the President can help disburse the remaining PEN Fund of Rp7.5 trillion into direct equity participation and not through the Mandatory Convertible Bond (MCB) scheme or operational fund assistance, considering his current condition is on the verge of bankruptcy and is in danger of stopping operations.

Fourth, request the acceleration of the establishment of a tourism ecosystem holding as a program from the Minister of SOEs to accelerate the recovery of the national economy, especially in the tourism sector.

Finally, form a team to audit all transactions in the procurement of aircraft and aircraft engines in the past and anyone who is proven must be prosecuted.

The letter, dated July 12, 2021, was signed by the General Chairperson of Sekarga Dwi Yulianta, APG President Capt Muzaeni, and the General Chairperson of the Garuda Indonesia Cabin Crew Association (IKAGI) Achmad Haeruman.


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