Garuda Indonesia Suspends Employees' Wages to Survive Pandemic

TEMPO.CO, Jakarta - The flag carrier Garuda Indonesia announced that it has decided to suspend the wages of its 25,000 employees during the coronavirus (COVID-19) pandemic. 

Garuda said that it has rescheduled the payment of annual incentives and other staffing benefits to sustain the company throughout the pandemic. 

“We surely are forced to conduct production efficiencies by suspending the wages of directors, annual incentives, and other supporting benefits. However, Garuda Indonesia is committed to distributing the annual holiday (THR) allowance for the board of directors and commissioners, even though the SOEs Minister has instructed otherwise,” said Garuda official Irfan Setiaputra in a teleconference with the House of Representatives' (DPR) Commission VI today, April 29.

The state-owned airliner has suffered financially since the ban on international flights to China and Saudi Arabia in the early stages of the COVID-19 worldwide outbreak. It peaked when the Indonesian government through the Transportation Ministry imposed a mudik ban or banning the homecoming. 

This condition, he said, has also affected Garuda’s subsidiaries such as the maintenance services, catering services, and transportation screens. 

“The total magnitude is nearly 25,000 employees,” said Irfan. 

The wage suspensions across positions within the Garuda Indonesia management vary and the amount of wages cut differs based on the job desks that range from 10-50 percent of the salary.

CAESAR AKBAR | EKO WAHYUDI