Ministry, DPR RI committee agree to rescue Garuda Indonesia

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State-Owned Enterprises Minister Erick Thohir on Friday expressed gratitude to the working committee of Commission VI of the House of Representatives (DPR RI) for committing to rescue flag carrier Garuda Indonesia from bankruptcy.

“We are thankful and wish to express the utmost gratitude for DPR RI Commission VI working committee’s commitment to rescue Garuda Indonesia,” Thohir said in a statement received here the same day.

The ministry and the parliamentary working committee have reached a consensus on Garuda Indonesia’s rescue plan, he informed.

The Ministry of State-Owned Enterprises will need support from several stakeholders, including the parliament, to rescue Garuda Indonesia, Thohir said. Political support from DPR RI has bolstered the ministry’s efforts to reform the flag carrier, he added.

“Praise be to God, after various working meeting and hearing meeting sessions and until the (formation of the) working committee, we have all concurred that rescuing Garuda Indonesia is a must,” he said.

Thohir affirmed that the ministry and Garuda Indonesia management are committed to implementing recommendations made by the working committee, which include improving corporate governance with a clear timeline and benchmarks.

Commission VI’s working committee has also urged the ministry and Garuda Indonesia management to consistently adhere to the business plan, optimize airline routes and aircraft fleets, implement the plan to reduce the lease rate, and bolster airline revenue from cargo services and other sources, the minister highlighted.

“The deal between DPR RI Commission VI working committee with the ministry and Garuda Indonesia demonstrates a good collaboration and synergy to rescue Garuda Indonesia,” he remarked.

Thohir also opined that support voiced by the working committee has complemented Garuda Indonesia’s transformation and restructuring efforts.

Source: Antara News