Stakeholders urged to help salvage Garuda Indonesia from bankruptcy

Stakeholders urged to help salvage Garuda Indonesia from bankruptcy

A Garuda Indonesia plane at the Yogyakarta International Airport ANTARA/Ahmad Wijaya/am.

If the situation returns to normal following the pandemic, then Garuda will be able to improve its performance and cover its liabilities.
Jakarta (ANTARA) - A lawmaker made an earnest request to stakeholders to rescue Garuda Indonesia from the threat of bankruptcy.

It is necessary to find the best solution to save Garuda by injecting capital into it and helping find a way out of its debts, among others, member of the House of Representatives' (DPR's) Commission VI, Herman Khaeron, noted in a press statement released on Wednesday.

Khaeron believes Garuda Indonesia can still be rescued if the COVID-19 pandemic is over.

“If the situation returns to normal following the pandemic, then Garuda will be able to improve its performance and cover its liabilities,” he stated.

To this end, Khaeron remains resolute to encourage stakeholders to work hand-in-hand to salvage the national flag carrier.

“We must continue to make endeavors to achieve the best agreement. Thus, Garuda still has an opportunity to continue its business and find an appropriate way to fulfill its obligation to repay its debts,” he noted.

Garuda reported losses to the tune of some $2 billion in 2020, with its short-term liabilities of $3.4 billion.

Related news: Garuda Indonesia to consider restructuring debt

The State-Owned Enterprises Ministry is striving for negotiations with lessors and creditors to save Garuda Indonesia.

“With regard to Garuda Indonesia, we are actually in the process of negotiations. We hope the negotiations would be successful,” State-Owned Enterprises Minister’s Special Staff, Arya Sinulingga, noted in a written statement released on Sunday (Oct 24).

If the negotiations are successful, then Garuda will be able to continue its operations, he remarked.

He highlighted that the ministry was focusing on an option to negotiate with Garuda’s lessors and creditors.

“We are struggling to negotiate with Garuda’s lessors and creditors. This is important. This negotiation option is the first that we prioritize. We’d better firstly find a solution in the first stage through negotiations with Garuda’s creditors,” he added.
   

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