Jakarta, CNN Indonesia –
Joint Secretariat of PT . Employee Union Garuda Indonesia (Persero) Tbk asked President Joko Widodo (Jokowi) to intervene to save a company that is experiencing financial problems.
Chairman of the Garuda Indonesia Employees Union (Sekarga) Tommy Tampatty said Jokowi had to intervene directly because the state-owned airline is an asset of the nation that has a long history of struggle.
“To maintain the sustainability of Garuda Indonesia as a flag carrier which is a national asset and has historical value for the struggle of the Indonesian people, so we hereby ask for support for rescue from the President,” he said at a press conference at the Sheraton International Airport Hotel, Friday (28/5).
Tommy said the employee union had also prepared a more comprehensive airline rescue strategy apart from the four options for saving Garuda offered by the Ministry of SOEs.
The option, which is called the Merah Putih National Flight Carrier, prioritizes changes to flight regulations that place Garuda Indonesia as a domestic airline.
“The current policy is too free. I don’t need to mention foreign companies, they are free to fly to our domestic destinations. There should be restrictions,” he said.
Including, for example, prioritizing Garuda Indonesia for government official trips that use the state budget. “It happens in other countries that all use of the APBN for official travel is required to use BUMN. Well, this is what we will also propose to the government,” he explained.
Tommy also said that later this strategy could be combined with the first option offered by the Ministry of SOEs. The option is to continue to support Garuda Indonesia through lending or equity injections.
The rescue model has been implemented by a number of airlines, such as Singapore Airlines, Cathay Pacific Airways Ltd, and Air China Limited, although it has consequences for the large legacy of long-term debt that must be borne by the company.
“We will meet Pak Jokowi. We are sure that Pak Jokowi will agree. Hopefully, Pak Jokowi will use his method as stated at the time, ‘I am starting to know that I will beat myself up using my method’. That’s roughly the case,” concluded Tommy.
(hrf / sfr)
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