Garuda Indonesia Debt Grows Rp1 Trillion Each Month, Says Legislator

TEMPO.CO, Jakarta - In a House hearing on Tuesday, Commission VI legislator Andre Rosiade recalled a statement from Garuda Indonesia president director Irfan Setiaputra who said that the flag carrier’s debts continue to increase exponentially each month. 

He said that Garuda is facing a situation where the company has to pay the rent fees of 101 airplanes that were unused during the Covid-19 pandemic. 

“The Garuda Indonesia president recalled that they have to pay Rp1 trillion per month in debt for the 101 aircrafts that are unused. We have pushed them to negotiate with the lessors,” said the Commission VI legislator from Gerindra Party on June 22. 

According to Rosiade, Garuda is currently preparing to renegotiate with a number of lessors in hopes of reducing their debt burden, which as of May 2021 has reached a total of Rp70 trillion. He said Garuda has appointed a consultant to face the legal risks from the lessors, which the House members said they will support the flag carrier’s restructuralization plan. 

Garuda Indonesia stated that it would need three weeks to present its proposals for over 30 lessors. The three weeks will effectively start from June 22 after the House hearing with Commission VI.

Also Read: House Meeting on Rescuing Garuda Indonesia Turns Heated

FRANCISCA CHRISTY ROSANA