TEMPO.CO, Jakarta - State-owned Enterprises (SOEs) Minister Erick Thohir on Thursday said that flag-carrier Garuda Indonesia has started the corporate restructuring after they passed the postponement of debt payment obligations (PKPU).

“It’s on track but the next stages must be guided to help Garuda fly high again,” said Erick in a written statement on August 11.

Erick ensured that the restructuring had proceeded as expected in the last two months. He admitted that although there was still a long way to go, the temporary results of the restructuring gave encouragement to the Ministry of SOEs and Garuda to continue to carry out the next stage of transformation.

During the restructuring process, the government injected funds into the company worth Rp7.5 trillion through state capital participation (PMN). He believes that domestic flights will grow even though the global situation remains uncertain.

“The domestic flight business is quite promising as long as it is managed professionally. As an archipelagic country, we must continue to encourage the growth of cities outside Java as new economic centers so that development is more equitable," said Erick.

Garuda Indonesia previously reported losses that were attibuted to the parent entity of US$4.16 billion or equivalent to Rp62 trillion in 2021. This loss increased from 2020 at US$2.44 billion.

Referring to the 2021 financial report (audited), Garuda Indonesia as a group recorded a decrease in operating income of 10.43 percent to US$1.33 billion. This operating income was supported by scheduled flight revenues of US$1.04 billion, non-scheduled flights of US$88.05 million, and other revenues of US$207 million.

Francisca Christy Rosana

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