Convinced Not To Extend PKPU, Conglomerate Chairul Tanjung Says Garuda Indonesia Will Increase Capital: Conditions Will Be Healthier

Conglomerate Chairul Tanjung. (Screenshot of CNBC Indonesia Economic Outlook/Mary Handayani)

JAKARTA - Founder & Chairman of CT Corp Chairul Tanjung said he was optimistic that PT Garuda Indonesia (Persero) Tbk's debt restructuring or Postponement of Debt Payment Obligations (PKPU) would achieve victory.

As is known, PT Garuda Indonesia (Persero) Tbk (GIAA) has again submitted a request for an extension of the PKPU process for 30 days to the Commercial Court at the Central Jakarta District Court. The application for this extension of time takes into account the ongoing verification of claims. "Definitely win," he told reporters, Thursday, May 19.

In principle, said CT, his party supports the PKPU process. In fact, based on the report he received, the PKPU extension was the last one. This means that there are no further extensions. So that on June 20, 2022, the PKPU process can be decided.

After the PKPU decision, which is believed to be true, CT assesses that the condition of this state-owned airline will improve again. This means that Garuda will be much healthier than before.

"With the PKPU process, there will be a discount from the creditors, right, meaning that Garuda's debt will decrease. So, if Garuda's debt decreases, then the situation will automatically be healthy, healthier. So the debt to equity will be good," he said.

On the same occasion, CT said that after the PKPU decision, Garuda Indonesia plans to increase its capital from the capital market. However, it is not certain whether the additional capital will be with or without pre-emptive rights.

"After that, it is planned that there will be a new injection from the capital market, a rights issue, whether it is in the form of HMTD or non-HMTD, now the legal review is being done. So, who wants to enter has not yet been decided," he said.

Furthermore, CT said that later some of these creditors would have the right to convert Garuda shares.

In addition, CT itself is reluctant to reveal whether Trans Airways will exercise its rights. But what is certain is that before making a decision, said CT, his party will first negotiate with the government.

"We will see the results of the PKPU, later we will negotiate with the government because the government is one of the largest shareholders right. So Trans Airways and the government will sit together to find the best solution later. Now the focus is still on creditors," he said.

For your information, the state's share in the issuer codenamed GIAA has reached 60.5 percent. Then, Chairul Tjanjung shares represented by Trans Airways as much as 28.2 percent, and the rest is owned by the public by 11.1 percent.