Garuda Indonesia Boss Opens Up On The Issue Of Layoffs: We're Looking For The Best Deal From PKPU

JAKARTA - President Director of PT Garuda Indonesia Irfan Setiaputra again responded to the issue of an adjustment in the number of employees or termination of employment (PHK) during their tenure. Irfan denied the issue. According to him, the management is currently focusing on undergoing the process of Postponing Debt Payment Obligations (PKPU).

"Garuda Indonesia is still focused on undergoing the PKPU process in order to obtain the best agreement in settling business obligations with creditors," he said in a written statement, Wednesday, February 2.

Regarding the news of the meeting between the Ministry of Manpower, Irfan said that until now there has been no meeting agenda regarding the adjustment of the number of employees.

"We can convey that Garuda has not yet had a meeting agenda with the Ministry of Manpower regarding the adjustment of the number of employees," he explained.

In addition, Irfan emphasized that the PKPU process that is currently being carried out by Garuda and all stakeholders is not a bankruptcy or bankruptcy process, but a restructuring process that is carried out within the legal corridor according to the PKPU mechanism.

"In this PKPU process, Garuda Indonesia also continues to establish intensive communication with all creditors, where in the process, Garuda has also received positive responses from a number of creditors, including aircraft lessors in the negotiation process to reach the best agreement for the settlement of business obligations," he said.

Furthermore, Irfan also explained that in an effort to restore performance which is currently being optimized, Garuda continues to be committed to prioritizing the interests of its employees in this challenging time.

"In line with our plans and efforts to become a strong business entity in the future. All employment policies and decisions that have been taken by Garuda of course refer to the applicable laws and regulations, as well as based on the constructive communication that we promote with employees," he said.

Irfan also emphasized that during the PKPU process, it is ensured that all aspects of flight operational activities will continue as normal, including passenger, cargo, and aircraft maintenance services.

Previously reported, the issue of layoffs was raised by the Director-General of Industrial Relations and Labor Social Security (PHI-Jamsos) of the Ministry of Manpower, Indah Anggoro Putri. He said that the management of Garuda and AirAsia will meet the Minister of Manpower regarding the strategic steps that must be taken.

The plan is for a meeting between the Ministry of Manpower, Garuda Indonesia, and AirAsia to be held on Thursday, February 3, 2022.

"Garuda and AirAsia are coordinating with me because they want to go bankrupt. This means that there are potential business problems that have an impact on employment problems, but the Ministry of Manpower is ready to help mediate, such as Pertamina," said Indah to reporters, Monday, January 31.