Minister estimates normalcy restored in aviation industry in 6 months

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State-Owned Enterprises (SOEs) Minister Erick Thohir estimates that the aviation industry in Indonesia will recover within the next six to eight months.

“The condition in several countries, including Indonesia, is starting to get back to normal. It may take six to eight months to return to normal since air transportation becomes an alternative for business trips and tours,” Thohir noted on Wednesday.

Hence, Thohir’s side is currently working to settle the state-owned airline Garuda Indonesia’s problem. However, the SOEs ministry refuses to be pushed by lessors or companies that provide services for leasing goods in the form of business use.

“We encourage the realization of Garuda Indonesia’s settlement. We also do not want to be pressured by lessors,” Thohir emphasized.

He emphasized that settlement with a lessor, who provided high rental prices with a corrupt element, must be avoided. Hence, until now, his side is still working on the best solution to restore Indonesia’s aviation conditions.

Thohir also said that his side will await the decision to postpone the debt payment obligation, or PKPU, in mid-May, specifically on May 20, 2022.

“Who knows, it could be a joint solution,” the minister noted.

The minister spoke of paying special attention to the aviation conditions in Indonesia. After the PKPU decision comes out, he will re-evaluate the supporting infrastructure from SOEs, especially in aviation.

Furthermore, his side will initiate market intervention if it is necessary to strike a balance.

“Indeed, we are concerned about this aviation industry,” he stated.

On the same occasion, Thohir also said that the airport’s recovery rate had reached 88 percent, with only 12 percent remaining towards normal. This increase in recovery is influenced by the Eid al-Fitr homecoming wherein people start to travel a lot for tourism purposes, going home, and to perform Umrah.

“The recovery rate at the airport has reached 88 percent, only 12 percent to reaching the normal condition,” he concluded.

Source: Antara News