JakartaGlobe-Nov 9

State-run airline Garuda Indonesia has “technically” gone bankrupt due to the fact of being insolvent and in negative equity amid allegations of corruption and misappropriation, a senior official said on Tuesday. According to the September 2021 financial reports, Garuda has negative equity of $2.8 billion and the burden increases by $100-150 million per month, said Kartiko Wirjoatmodjo, a deputy for the state-owned enterprises minister. “Under the banking interpretation, such a condition means that [Garuda] is technically bankrupt although it’s not officially declared so,” Kartiko said in a hearing with a House of Representatives commission overseeing state-owned companies. He blamed poor management and past corruption for the financial hardship in Garuda today. The Covid-19 pandemic has worsened Garuda’s financial crisis as revenues fell sharply due to global travel restrictions. The company is renegotiating rates with creditors and aircraft lessors to restructure its debts and reduce debt loads, Kartiko said. Read more at: https://jakartaglobe.id/business/garuda-is-technically-bankrupt-official