Not Massive Layoffs, Garuda Indonesia Boss Chooses Retirement Offers, Unpaid Leave, Up To Salary Reduction

JAKARTA - President Director of PT Garuda Indonesia (Persero) Tbk or Garuda Indonesia Irfan Setiautera revealed that he has no plans to lay off employees on a large scale. However, there are cost efficiency efforts in the personnel sector by the company.

Irfan's statement was delivered to answer questions from the Indonesia Stock Exchange (IDX), Friday, February 4.

"There is no plan to lay off employees on a large scale. We are focused on undergoing the process of Postponing Debt Payment Obligations (PKPU)," said Irfan.

Irfan added, during the PKPU process, the company ensures that all aspects of flight operational activities continue to run normally.

Even so, Irfan admits there are cost efficiency efforts in the personnel sector. One of them is through an accelerated retirement program for employees and implementing an unpaid leave program through alternate work arrangements for pilots with reference to the number of flights operated by the company.

"We also carry out salary cuts for all employees, including the commissioners and directors," added Irfan.

Through these efforts, Irfan believes, this is done by always prioritizing constructive communication with employees to ensure the focus of transparency in corporate governance commitments, especially through optimal HR management.

On the other hand, Irfan denied the news regarding the agenda of Garuda Indonesia's meeting with the Ministry of Manpower regarding the reduction of the number of employees. "We are still focusing on the PKPU restructuring process," he explained.