GIAA - PT. Garuda Indonesia (Persero) Tbk

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JAKARTA. The Minister of Finance, Sri Mulyani, suggests Commission XI of House of Representatives of Indonesia (DPR) to grant extra state capital to PT Garuda Indonesia worth IDR 7.5 trillion.

Sri Mulyani said that this extra capital will be channelled from investment funding reserves, which have been set to IDR 21.48 trillion in the 2022 State Budget. “It has yet to be considered,” she added during the work meeting with Commission XI of DPR RI yesterday (22/9).

Rionald Silaban, Director-General of State Assets of the Ministry of Finance, explained that this extra state capital investment is needed after significant decreases in operational and financial conditions of Garuda Indonesia. “The urgency behind this state investment in Garuda Indonesia is to support and save our national flight,” he stated. In fact, Garuda Indonesia plays a vital role in maintaining accessibility and connectivity between islands in Indonesia.

In 2020, Garuda experienced a significant decrease in performance due to COVID-19 pandemic. The number of users plummeted, as did its Available Seat Kilometres (ASK) of 5.2% and its cargo of 30%. In terms of financial, Garuda also struggled throughout 2020 and 2021. (AM/ZH)