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June 19, 2021, 07.29 AM

JAKARTA, – Embattled Indonesian flag carrier Garuda Indonesia continues to reel under a series of setbacks this June.

These include nearly $5 billion in debt and the fallout from the Covid-19 pandemic, such as travel restrictions, as well as the decreasing number of passengers numbers and destinations.

The Indonesian Stock Exchange or PT Bursa Efek Indonesia (BEI) delivered the latest blow, after it suspended trade in the airline’s shares.

Also read: Garuda Indonesia Owes Employees $23 Million in Arrears

“[The BEI] suspended trade in Garuda Indonesia stocks, with the stock exchange code GIAA, after it delayed payment of Rp. 7.2 trillion [$500 million] in bonds,” the BEI announced Friday, June 18.

“[Garuda’s inability to pay the bonds] indicated problems with their business operations,” said BEI Head of Trading Operations Irvan Susandy and Head of Evaluation and Monitoring Unit Vera Florida.

“Therefore, the BEI decided to halt securities trading in Garuda Indonesia stocks, effective on June 18 until further notice.”

A Garuda Indonesia plane sporting the airline's new mask liverydok. Instagram @garuda.indonesia A Garuda Indonesia plane sporting the airline's new mask livery

BEI further explained that Garuda Indonesia has deferred payment of bonds, which were due on June 3, to June 17, 2021, due to a 14 day grace period.

“The [BEI] urges all parties to monitor the latest information by the company in question.”

Prior to its suspension on Thursday, Garuda’s stocks were sold at Rp. 222 per share, while the transactions are worth Rp. 4.53 billion ($312,640.18) from the 20.29 million stocks that were bought and sold.

Garuda Indonesia also owed its employees $23 million in arrears since last December. The airline’s board of commissioners pledged that they will not take a cent, until the airline’s finances recover.

Also read: Garuda Indonesia to Reduce Number of Board of Commissioners

Minister of State Owned Enterprises (BUMN) Erick Thohir also said that he will reduce the number of commissioners from five to two or three, to save costs.

Garuda incurred its Rp. 70 trillion debt because of the reduced number of passengers and destinatons during the Covid-19 pandemic. Other causes include corruption and financially questionable deals.

These include the sentencing of former President Director I Gusti Ngurah Askhara or Ari Askhara to one year in jail for smuggling Brompton bicycles and Harley Davidson motorbikes in 2019.

The debt was also caused by the renting of 12 CRJ1000 jets from the Nordict Aviation Capital leasing company in 2011.

(Writer: Ade Miranti Karunia | Editor: Bambang P. Jatmiko)


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