JAKARTA. PT Angkasa Pura I (AP I) decided to restructure its financial and operational posts following the increasing debts of up to IDR 35 trillion. This debt surge is due to the recent airport establishments worsened by the COVID-19 pandemic.
“AP I is, indeed, in a tight spot, with debts of IDR 35 trillion and a monthly rate loss of IDR 200 billion. If it was not restructured, the debt would have reached IDR 38 trillion by the end of the pandemic,” Kartika Wirjoatmodjo, Vice Minister of State-Owned Enterprises (BUMN), explained during the meeting with the Commission VI of the House of Representatives (DPR) last week. He also said that the financial expenses that AP I must deal with were quite heavy due to the emergence of new airports.
In regards to the restructuring, President Director of Angkasa Pura I, Faik Fahmi, claimed that the management would try out asset recycling, intensify receivables collection, and apply for tax restitution. It would also launch operational efficiency strategies like traffic-based airport services, simplify the organisation, postpone investment programs, and encourage subsidiaries to create new income sources.
According to Fahmi, the total target of these restructuring processes would amount to IDR 3.8 trillion of additional funds while gaining cost efficiency of IDR 704 billion and raising funds of IDR 3.5 trillion. He is optimistic that these strategic initiatives could help the company face these trying times and revive itself in 2022, posting a positive financial record. (AM/ZH)