Garuda Indonesia Suffers IDR 10 Trillion Losses

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  • A technician is preparing to check Garuda Indonesia's Boeing 737 Max 8 aircraft at the Garuda Maintenance Facility AeroAsia in the Soekarno-Hatta International Airport, Tangerang, March 13, 2019. REUTERS/Willy Kurniawan

    A technician is preparing to check Garuda Indonesia's Boeing 737 Max 8 aircraft at the Garuda Maintenance Facility AeroAsia in the Soekarno-Hatta International Airport, Tangerang, March 13, 2019. REUTERS/Willy Kurniawan

    TEMPO.CO, Jakarta - Indonesian flag carrier Garuda Indonesia recorded a decrease in financial performance in the first semester of 2020. Based on the company's report, the state-owned airline suffered USD 712.73 million losses, which is equal to IDR 10.19 trillion.

    Garuda Indonesia Director Irfan Setiaputra said that the airline is hoping for a normal passenger occupancy recovery to revitalize their balance sheet. "Which will increase our revenue," Irfan said when contacted by Tempo on Friday, July 31, 2020.

    Irfan had not made any predictions for income from the number of passengers for the end of this year. However, on Wednesday, July 29, 2020, Irfan had said that the airline is experiencing a sharp decrease in occupancy rate in May 2020 to only 10 percent occupancy rate.

    Currently, the airline is still depending on logistic flights and repatriation. Meanwhile, the occupancy rate in July 2020 had only increased by 2 to 3 percent.

    As reported by Bisnis Indonesia, Garuda Indonesia's management reported in the airline's financial statement on June 30, 2020, the total income of the company is USD 917.28 million. The value is 58.18 lower compared to the previous USD 2.19 billion, year-on-year.

    Based on the Rupiah JISDOR rate of IDR 14,302 on June 30, 2020, the airline books an income of IDR 13.12 trillion.

    The company's operating expenses were reduced to USD 1.64 billion as of June 2020 compared to the previous USD 2.11 billion. However, the company recorded a USD 707.22 million losses, while previously, the company recorded a USD 81.98 million profit.

    Garuda Indonesia recorded IDR 10.19 trillion losses attributable to the company's principal owner. The value was a reverse of the company's USD 24.11 million profit on June 2019. Meanwhile, the company channeled USD 48.86 million of its net balance for investments, lower compared to the previous USD 70.31 million. The company's cash and cash equivalent at the end of the period was recorded at USD 165.42, much lower compared to the previous USD 321.73 million.

    However, the airline's liability increases to USD 10.47 billion from the previous USD 3.73 billion by the end of 2019. Its short-term liability is recorded at USD 4.4 billion as of June 2020, higher compared to the previous USD 3.26 billion. Furthermore, the company's equity is recorded at a negative USD 80.77 million compared to the positive USD 720 million recorded at the end of 2019. Meanwhile, the company's asset is recorded at USD 10.28 billion, higher compared to the previous USD 4.5 billion.

    FRANCISCA CHRISTY ROSANA | BISNIS