The Wings of Garuda After PKPU Decision
The PKPU decision is positive for GIAA and this is an opportunity for Garuda to take a breath and be able to continue the restructuring program, including accepting PMN commitments from the government and then fresh funds from the rights issue that will be absorbed by other strategic investors.
This financial support will greatly assist GIAA in strengthening the working capital needed to absorb domestic flight demand and the Umrah or Hajj flight market. GIAA also has the opportunity to develop its cargo business with this injection of funds.
Regarding the risks that may arise from the GIAA’s obligation to register the results of PKPU in international courts, Garuda must comply with these provisions. This is clear because international creditors need certainty and a guarantee of payment from Garuda even though a restructuring decision has been reached.
Furthermore, when this state-owned airline passes PKPU, a new era of Garuda management based on good corporate governance (GCG) becomes a must. The practice of corruption and abuse of authority that has often occurred in the past needs to be stopped immediately. One way is through effective supervision from the Board of Commissioners.
The issuance of PP 23/2022 which regulates the management of SOEs can be good support. If the directors or commissioners are negligent and cause a loss to the company, then they can be legally sued and compensated for the losses incurred. Of course, this is done fairly where the principles of the Business Judgment Rule are implemented openly.
