House Meeting on Rescuing Garuda Indonesia Turns Heated

TEMPO.CO, Jakarta - House of Representatives (DPR) Commission VI legislator Nusron Wahid on Monday engaged in a heated argument with Garuda Indonesia president director Irfan Setiaputra during a meeting discussing the 4 options to save the flag carrier from bankruptcy.

The legislator from the Golkar Party pinned his questions to the Garuda boss regarding the options available and how the carrier’s board of directors can be held accountable for consequences of either four options. 

“You (Irfan Setiaputra) said you are capable of rescuing Garuda with options two or three. The government may possibly grant the second option but for me personally I am not convinced with that option and remain at the first option. The question is how long can this problem be solved with option number two? And what are the consequences in terms and conditions you said are not met? Your reputation may get tarnished and in the end Garuda will die. We do not want Garuda Indonesia to cease to exist,” said Nusron in the meeting on June 21. 

However, Setiaputra defended by saying that the House legislator can express his objection to the State-owned Enterprises Minister Erick Thohir.

“Well if you don’t have faith in us you can mention this issue to the Minister that you lost faith in the current directors, and ask for changes,” the Garuda Indonesia president replied. 

The House legislator believes in option number one, which involves a scenario to continue supporting the rescue of Garuda Indonesia through equity injections and loans. Meanwhile, Irfan Setiaputra tends to prefer option number two which is by restructuring Garuda’s debts that are already due by filing for Debt Payment Obligation Postponement (PKPU).

For option number 2, once they file for the PKPU there will be a deadline of 270 days before the company goes bankrupt if no agreement is made between debtor and creditor. If this option is taken, both House legislators and Garuda management will meet again in January.

“The most important is that Garuda Indonesia lives. In December as you pledged, in January we will meet again. If Garuda remains alive I will appreciate it. But if Garuda dies, all of you gentlemen must go down with it,” said the House legislator. 

Read: Garuda Indonesia No Longer Offer Direct Flights to Perth, Melbourne

MUHAMMAD HENDARTYO