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Tourism Minister Calls for Efforts to Salvage Garuda Indonesia

1 November 2021 17:48 WIB

Garuda Indonesia airplane. (MMKSI)

TEMPO.CO, Jakarta - Tourism and Creative Economy Minister Sandiaga Uno on Monday said urgent steps are needed to save flag-carrier Garuda Indonesia from an economic downfall. He added the company could only be saved by introducing thorough business restructuring. 

“We should collectively back the restructuring plan since Garuda is a national flag carrier. We must do anything to save Garuda,” said the Tourism Minister in a press conference on November 1. 

One of the “rescue strategies” Sandiaga referred to is introducing the concept of good corporate governance into the carrier. 

Previously reported, Garuda Indonesia director Irfan Setiaputra said the company is accelerating its steps to improve business performance, among them through the restructuring of joint business obligations of all creditors. 

He believed restructuring is the most viable and relevant option to help Garuda Indonesia recover. The carrier, at the end of 2020, managed to extend its business payment obligation with state-energy firm Pertamina. 

Irfan Setiaputra is optimistic towards the partnership with Pertamina and other business partners, which he said is the fundamental foundation for Garuda Indonesia’s business continuity.

Read: Garuda Indonesia Must Focus on Domestic Air Travel, Says Erick Thohir

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