Erick Thohir Says Garuda Indonesia's Debt Drops by Nearly 50%

TEMPO.CO, Jakarta - State-Owned Enterprises (SOE) Minister Erick Thohir said that national flag carrier PT Garuda Indonesia's debt had now dropped by almost 50 percent following its recent debt restructuring. The company also experienced an increase in equity from minus 5.3 to 1.5.

"This means, it is getting far from the grip of debt and others," Erick said in a working meeting with the House of Representatives (DPR) Commission IV on Monday, December 5, 2022.

The company's performance is also considered to have improved. In June 2022, Erick said Garuda had generated US$ 3.8 million in profit. 

The SOE Ministry will therefore encourage the airlines to add more aircraft as the company's finances improve. Moreover, Indonesia as an archipelago still needs additional aircraft to boost connectivity

The state capital injection or PMN provided for Garuda was used to expedite the procurement of its fleet "that are needed to tackle fluctuating prices of air tickets," Erick said.

Erick added that in an attempt to fulfill the need for domestic air transportation, Indonesia requires 750 units of aircraft. Meanwhile, currently, there are only 550 aircraft available. "The increase [in the number of fleets] must be prioritized," Erick underlined. 

Minister Erick Thohir also hoped that next year, the number of Garuda Indonesia's aircraft can continue to increase to serve the needs of the community.

RIANI SANUSI PUTRI

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