Official Court Extends Garuda PKPU, President Director: This Is An Important Sign

JAKARTA - The Jakarta District Court Panel of Judges on Thursday 19 June decided to extend the last stage of the Suspension of Debt Payment Obligations (PKPU), until 20 June 2022.

Garuda Indonesia President Director Irfan Setiaputra explained that the latest extension of the PKPU process was a positive signal for the acceleration of Garuda Indonesia's restructuring steps.

He said this latest extension would provide a more measurable and specific space and timeframe, so that negotiations on the peace plan that is being intensified with creditors could be finalized soon.

"This latest PKPU extension is also an important sign that the communication process that has been taking place so far between Garuda and its creditors shares the same optimism about Garuda's business outlook going forward, and shows the confidence of the Panel of Judges and the Management Team," Irfan said in a statement to reporters, Saturday 21 May.

According to the information submitted by the Management Team, the next stage of the Garuda PKPU process is the determination of the Fixed Receivable List (DPT) which will later become the basis for the PKPU voting agenda.

Irfan hopes that all stages of PKPU will soon reach a peace agreement, so that all parties can immediately welcome Garuda's business transformation.

Irfan added, during the PKPU process and in the midst of the challenges of the global aviation industry, Garuda ensures that passenger and cargo flight operations continue to run optimally, and are slowly starting to show promising improvements.

Meanwhile, Garuda's operational performance from last April when compared to the February period showed a significant growth in passenger transportation of 74 percent.

According to Irfan, this is inseparable from various relaxations of community mobility policies, the return of homecoming activities and peak season travel during the Lebaran period.

It was noted that at the end of April 2022 the flight frequency grew by 20 percent compared to the initial period of February 2022.

"We believe that various adaptation efforts in responding to the challenges of the increasingly dynamic performance of the aviation industry will be a comprehensive step for Garuda to become an increasingly agile and resilient business entity with a focus on measurable and sustainable profitability," concluded Irfan.