Debt Restructuring Aims to Improve Garuda Indonesia Performance: Minister

Minister of State-Owned Enterprises Erick Thohir has a conversation with Vice Minister of State-Owned Enterprises Kartika Wirjoatmodjo. (Photo by: PR of Cabinet Secretariat/Agung)

The Government and the House of Representatives (DPR) succeeded in restructuring the debt of national flag carrier Garuda Indonesia, Minister of State-Owned Enterprises Erick Thohir stated.

“We have managed to restructure Garuda through debt restructuring so that Garuda can improve its performance,” Erick said in a press conference on Wednesday (08/24) after attending a cabinet meeting chaired by President Joko “Jokowi” Widodo.

Erick said that after the debt restructuring, the Government injected the capital to Garuda Indonesia worth Rp7.5 trillion.

“After the debt restructuring, the Government will inject capital of Rp7.5 trillion. The decision was actually made almost 1.5 years ago, before COVID-19 pandemic,” he asserted.

With the debt restructuring, Garuda Indonesia and its subsidiary Citilink will start increasing the number of their planes and it is expected that at the end of the year the number will be doubled.

“Garuda Indonesia, after the debt restructuring, will increase the number of their planes. Currently Garuda and Citilink have 61 planes and it is expected that the number will be 120 at the end of the year,” Erick added.

Erick expressed hope that the fleet expansion will reduce the airfare at national level.

“We will ensure that the rental price will be on par with the market price,” the Minister conclusively remarked. (DND/UN) (RI/MMB)