Garuda Indonesia Rescue Strategy, Observer: Mandatory Lean Management

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - Aviation observer Alvin Lie said one of the strategies to save Garuda Indonesia was to downsize the ranks of directors and commissioners of PT Garuda Indonesia.

Currently, said Alvin, the company does not have many options to maintain its business amid the outbreak of the COVID-19 pandemic which has severely hit the aviation industry.

"Does Garuda have another choice? No. Management must be neat, effective and agile," he said when contacted by VOI, Sunday, August 15.

Alvin said that by changing the board of directors and commissioners, it would cut the salary burden that must be paid by the company. According to him, the funds can also be allocated for more urgent needs.

However, Alvin did not want to speculate about whether the policy could save the state-owned airline from bankruptcy or not. This is because the recovery of financial conditions is more influenced by external factors. Such as how long the pandemic lasts and the number of airplane passengers.

"About whether it can be saved or not? There are many external factors such as how long the pandemic will last, the impact of the pandemic and policies or regulations that continue to change," he said.

Previously, at the Annual General Meeting of Shareholders (AGMS) held on Friday, August 13, Garuda Indonesia cut a number of directors and commissioners. President Director of PT Garuda Indonesia Irfan Setiaputra said that this step was unavoidable.

"Especially for the board of directors, this is an unavoidable effort considering that from time to time we continue to make efforts to reduce or streamline the number of employees," said Irfan.

Meanwhile, regarding the reshuffle of the composition of the board of commissioners, Irfan could not explain further, because it was not part of his authority.

"This may be more appropriate for the Ministry of SOEs to answer," he explained.

The following is a list of Garuda's Board of Commissioners and Directors:

Commissioner:1. President Commissioner/Independent Commissioner: Timur Sukirno2. Commissioner: Chairal Tanjung3. Independent Commissioner: Abdul Rachman

Directors:1. President Director: Irfan Setiaputra2. Director of Finance and Risk Management: Prasetio3. Director of Operations: Tumpal Manumpak Hutapea4. Human Capital Director: Aryaperwira Adileksana5. Technical Director: Rahmat Hanafi6. Director of Services and Commerce: Ade R. Susardi

The list of names that were honorably dismissed from the commissioners and directors of Garuda Indonesia based on the proposal from the Series A Dwiwarna shareholder, namely:

Commissioner:1. President Commissioner: Triawan Munaf2. Independent Commissioner: Elisa Lumbantoruan3. Commissioner: Peter Frans Gontha4. Independent Commissioner: Zannuba Arifah Chafsoh Rahman Wahid (Yenny Wahid)