House comes up with proposals to stave off Garuda bankruptcy

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Garuda Indonesia
Garuda Indonesia’s fleet of aircrafts. (Source: VOI)

Jakarta, IO – The House of Representatives (DPR) through the Garuda Rescue Working Committee formed by Committee VI came up with several proposals to help PT. Garuda Indonesia (Persero) Tbk stave off bankruptcy.

“We urge the SOE Ministry and Garuda Indonesia to consistently implement the agreed business plan, namely by optimizing flight routes, number and type of aircraft, reducing aircraft rental costs, increasing cargo revenue, and other derivative or ancillary businesses,” said Committee VI deputy chairman Martin Manurung in a press release, Monday (25/4).

Read: House Committee V urges Angkasa Pura to improve service

Martin said Committee VI also approved the proposed Rp7.5 trillion worth of State Capital Injection (PMN) to PT Garuda Indonesia.

“The PMN comes from Budget 2022 Investment Financing Reserve, which will be disbursed if PT Garuda Indonesia reaches an agreement with its creditors in its Suspension of Debt Payment Obligations (PKPU),” said Martin.