TEMPO.CO, Jakarta - CEO of state airliner Garuda Indonesia, Irfan Setiaputra, said his office will cut the salary of its directors and employees starting this month.

"Starting this August, we cut salary of directors commissioners to 50 percent," Irfan said when contacted on Saturday, August 14.

He said that the work management will be handled between the commissioners. As for the salary of all employees, he continued, it will be cut to around 30 to 50 percent.

Garuda Indonesia yesterday, August 13, decreased the number of directors and commissioners which was announced at the general meeting of shareholders (GMS).

“It's an unavoidable matter since the streamlining of the number of employees. It will indirectly affect the directors and commissioners eventually,” said Irfan Setiaputra in a press conference held virtually on August 13.

Garuda cut the commissioner post from five to three people. It discharged the previous four commissioners, namely Triawan Munaf, Yenny Wahid, Peter Frans Gontha, and Elisa Lumbantoruan. The company named Timur Sukirno as the President Commisioner replacing Triawan Munaf and Abdul Rachman as the Independent Commissioner. It also cut the number of directors from eight to six people.

This decision was made due to severe financial issues faced by Garuda Indonesia in the past few months. The turbulence in the company was caused by the decreasing number of passengers due to the community mobility restrictions amid the coronavirus outbreak.

Read also: Garuda Indonesia Suffers Rp5.5tn Losses as Income Dropped by 54% in Q1

Muhammad Hendartyo