JAKARTA. PT Garuda Indonesia Tbk (GIAA) proposes to give mandatory convertible bonds (MCB) with a 3-year tenor for bailout funds provided by the government, so that management will make every effort to maintain business continuity.
The government, through the National Economic Recovery (PEN) program, will provide bailout funds to a number of SOEs, one of which is GIAA.
President Director of GIAA, Irfan Sebuahutra explained that his party proposed to issue MCB with a 3-year tenor, with the government or PT Sarana Multi Infrastruktur (Persero) acting as a standby buyer.
According to Irfan, the MCB should be issued so that his party does not merely rely on bailout funds. He wants to ensure that management will try hard to maintain business continuity and to improve the company's revenue fundamentals.
"Because Garuda has been assisted by the government several times. So it is important to ensure a stronger cost structure and fundamental revenue, "he said in a hearing (RDP) with Commission VI of the House of Representatives (DPR RI) today (14/7). (AM/AR)