Indonesian Stock Exchange Halts Trade in Garuda Indonesia Stocks
The Indonesian Stock Exchange or PT Bursa Efek Indonesia (BEI) has suspended trade in Indonesian flag carrier Garuda Indonesia’s shares, after the embattled airline “delayed payment of Rp. 7.2 trillion [$500 million] in bonds,” the BEI announced on Friday.
“[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.”
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.
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’s is weighed down with nearly Rp. 70 trillion ($5 billion) debt from corruption and mismanagement. Another issues is the fallout from the Covid-19 pandemic, such as travel restrictions, as well as the decreasing number of passengers numbers and destinations.
Dapatkan update berita pilihan dan breaking news setiap hari dari Kompas.com. Mari bergabung di Grup Telegram "Kompas.com News Update", caranya klik link https://t.me/kompascomupdate, kemudian join. Anda harus install aplikasi Telegram terlebih dulu di ponsel.