300 Garuda Indonesia Employees Opt to Retire Early

TEMPO.CO, Jakarta - Garuda Indonesia (IDX: GIAA) CEO Irfan Setiaputra reported that at least 300 employees have taken early retirement as of today, July 7. The state airliner offered the option in a bid to reduce its financial burden amid the ongoing pandemic.

“Hundreds of people have applied for early retirement. Some 300 workers have applied today, and it (the number) keeps increasing,” said Irfan when met at the Parliament Building, Senayan, Jakarta, Tuesday, July 7.

Irfan stated that based on the existing regulations, employees who are offered to take an early pension are those above 45 years old. He ensured that the company will fulfill the employees’ rights, such as allowance.

Besides, the company will provide additional benefits. “We will comply with all the rights and we will give additions because this helps the company for the long term,” Irfan added.

The offer was made after the flag carrier decided to furlough contract workers last month as part of its efficiency measures.

Since the pandemic, Irfan claimed Garuda Indonesia saw no income from sales of flight tickets. To date, the passenger occupancy of the airliner did not even reach 50 percent.

Moreover, Irfan claimed, many employees were interested in taking the option of early retirement. “Workers who wish to open a business or have other opportunities select it,” he concluded.

Read: SOE Ministry Responds to Garuda Indonesia's Pilot Layoffs

FRANCISCA CHRISTY ROSANA