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Garuda: Profit and Propriety

Garuda Indonesia to Secure its Profitability and Protect the Interests of its Workforce

With the appointment of a new Board of Directors and Board of Commissioners for the Indonesian National Flag Carrier Garuda Indonesia, the Minister of State-Owned Enterprises (BUMN), Erick Thohir, says the new leaders for the Airline pave the way to overcome two main problems confronting the carrier.

NusaBali, quoted Erick Thorhir who, following the announcement of the new Commissioners and Directors, said on Thursday, January 23, 2020, Garuda must overcome both business issues and matters surrounding the protection of its labor force.

Thorhir firmly rejected claims by those who depicted the appointment of the former head of the Agency for the Creative Economy Triawan Munaf and daughter of former President, Yenny Wahid, as merely the distribution of political favors. Adding: "Clearly the reason for the appointment of Triawan Munaf is linked to his innovative role in the creative industry sector and the understanding that Garuda Indonesia confronts competition in a number of areas outside aviation services.”

According to the BUMN Minister, in the “millennial eraGaruda Indonesia must establish new innovative and creative steps in order to remain competitive. Commenting on the appointment of Yenny Wahid as an Independent Commissioner for the Airline, Thohir said the popular political figure and daughter of Former President Abdurrahman Wahid is a good choice and was needed to protect the many women working with the National Airline. Shortly after his appointment as CEO of Garuda Indonesia, Irfan Setiaputra (shown) restated the instructions from the BUMN Minister that the new directors and commissioners of the Airline must remain compact. Irfan also said he would reach out to create closer cooperation with Angkasa Pura II, Angkasa Pura I, Pertamina and other business partners of the Airline.

The new CEO of Garuda Indonesia also restated instructions given by Erick Thorhir demanding that the National Flag Carrier be a profit-making company. In this regard, Setiaputra told a press conference held at Garuda Indonesia’s headquarters that he would be reviewing all the subsidiaries and affiliate companies of the Airline.

Garuda’s new Chief Executive also said he would be looking at decisions and recommendations made by the interim-CEO Faud Rizal. Asking: “Will subsidiaries and affiliate companies be reabsorbed into the main company as a step to reduce the financial exposure of these affiliates?”

The CEO of Garuda Indonesia explained that the BUMN Minister Erick Thohir has called on all State-owned enterprises to consolidate their businesses and focus on their core activities, thereby providing non-BUMN companies the opportunity to support the Airline’s business activities.

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