New Capital Injection to Save Garuda Indonesia

By Editorial Team 25/04/2022
Garuda's new management
Summary

Chances are open to save PT Garuda Indonesia Tbk (GIAA) from bankruptcy. The Industrial Commission of the House of Representatives (DPR) approved the government's plan to disburse Rp 7.5 trillion in state capital investment (PMN) for the flag carrier. The investment included in the 2022 State Budget (APBN) will be disbursed if Garuda reaches an amicable agreement with creditors in a request for a debt payment obligations postponement (PKPU).

Martin Manurung, Chairman of the Garuda Indonesia Rescue Working Committee, said there are several records for Garuda rescue. The House requested that Garuda immediately implement business plans, including optimizing routes, increasing the number of aircraft efficiently, and boosting cargo services.

The House also approved the privatization of Garuda through debt to equity conversion and additional capital. "The government should coordinate with the Privatization Committee to keep the state ownership at least 51 percent," Martin said on Friday. Minister of State-Owned Enterprises (SOEs) Erick Thohir said PMN would provide positive sentiment in the PKPU process.

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