Waiting For The AGM On August 13 Concerning The Fate Of Garuda Indonesia, Airlines With Debts Of IDR 70 Trillion, Employees Restless And Asking For Erick Thohir's Help

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - The United Garuda Indonesia Employees Union requested the support of SOE Minister Erick Thohir to save Garuda Indonesia from financial difficulties. According to them, this national airline is facing two main problems that must be a concern for decision makers.

Garuda Indonesia Bersatu Secretary Coordinator, Tomy Tampatty said the first problem was about finances, especially the large debt coupled with declining operational performance as a result of the impact of COVID-19.

"Second is a fundamental business problem that needs to be reorganized and managed optimally in order to optimize revenue," he said in a written statement received by VOI, Tuesday, August 10.

Therefore, said Tomy, it is very necessary for people who really understand in the field of aviation business. According to him, management made a mistake in assuming that Garuda Indonesia's problems were only financial problems, including debt restructuring as its main pillar, but had not yet touched the root of the problem and tended to shift short-term problems into long-term problems.

"In fact, business fundamentals for profit creation are far more important which have been neglected, such as the accuracy in choosing the production equipment, the accuracy in choosing the route to be flown and the accuracy of the people process technology that is carried out so that the business becomes profitable," he said.

In the future, said Tomy, Indonesia also needs to develop this aviation and tourism ecosystem in a strategy to survive and grow through strong collaboration and synergy between BUMN/BUMD, Private SMEs and the Government and all stakeholders.

"That our visit to the office of the Minister of SOEs is solely to ask for support from the Minister of SOEs, Erick Thohir in terms of rescuing the flag carrier Garuda Indonesia," he said.

He explained that there were two hopes conveyed by the United Garuda Indonesia Employee Union to Erick. First, Erick needs to save Garuda Indonesia without the PKPU option.

Second, the United Garuda Indonesia Employees Union hopes that the Ministry of SOEs can make the best decisions at the General Meeting of Shareholders (GMS) on August 13, 2021.

"Later, the Minister of SOEs can make the best decisions on all agenda items of the GMS," he said.

The financial performance of the airline PT Garuda Indonesia (Persero) Tbk (GIAA) will not improve in 2021. Garuda Indonesia is in debt of up to Rp70 trillion.

Quoted from Bloomberg, Monday, May 24, President Director of Garuda Indonesia, Irfan Setiaputra, said the state-owned airline company was in a difficult financial condition. According to him, Garuda Indonesia has a debt of US$4.9 billion or around Rp.70 trillion.

The amount of debt increased by more than Rp1 trillion per month in line with the delay in payments made by the company to suppliers.