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Garuda Indonesia Obtains Rp7.5 Trillion State Capital Injection

20 December 2022 13:06 WIB

TEMPO.CO, Jakarta - Flag carrier Garuda Indonesia officially received an Rp7.5 trillion state capital injection or PMN on Tuesday. According to its president director, Irfan Setiaputra will be used to strengthen the company’s recovery and optimize its contribution to the national economic recovery, especially in tourism.

“We would like to thank the government for the realization of the state capital funds and to all of those who supported Garuda’s mission towards transformation,” Irfan wrote in his statement on December 20.

The magnificent amount of state funds for the flag carrier comes after the company passed the debt suspension case or PKPU. Back in April, the Garuda Indonesia president pledged to not use the PMN to pay off company debts but rather operate airplanes that were previously grounded. 

The state capital injection that is derived from the 2022 State Budget will be used to support the accelerated recovery of the company's performance, especially in the line of flight operations. 

Among those subjected to the funds are fleet restoration programs, aircraft spare parts and maintenance, and a myriad of other aircraft components. Garuda Indonesia will also use PMN funds to improve the company's cash flow to support the smooth operation of the aircraft.

MOH KHORY ALFARIZI

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