Investors Who Want To Save Garuda Are Still Waiting For PKPU Results

JAKARTA - The government is seeking the entry of new investors to save PT Garuda Indonesia Tbk, which is threatened with bankruptcy due to debts of up to IDR 319 trillion.

Minister of State-Owned Enterprises Erick Thohir said investors were still waiting for the 30-day delay in the payment of debt obligations or PKPU.

"We are still waiting for the PKPU which was proposed to be postponed for another 30 days to get a will from the government or us as government representatives that the rental price is expensive, the leasing price is expensive. That means, we will stay there, if it breaks, then we will talk to investors," Erick said, quoted from Antara, Thursday, June 2.

Based on previous reports, the Jakarta District Court Panel of Judges has decided on the final extension of the PKPU stage for Garuda Airlines until June 20, 2022.

The next stage is the determination of the list of fixed receivables which will later become the basis for the PKPU voting agenda.

On the other hand, Commission VI of the House of Representatives of the Republic of Indonesia agreed with the government's plan to disburse State Capital Participation (PMN) funds of IDR 7.5 trillion for Garuda Airlines.

The funds will be taken from the 2022 budget with a note if Garuda reaches a peace agreement with creditors.

In addition, the parliament also gave the green light regarding the possibility of restructuring in the form of converting debt into shares with minimum state ownership of 51 percent.

In an effort to save Garuda airline, Minister Erick previously also visited the Attorney General's Office to follow up on indications of alleged corruption within the company.

The collaboration between the Ministry of SOEs and the Attorney General's Office was carried out in an effort to foster investor confidence in the government's efforts to improve Garuda Indonesia.