Indonesian Tourism Minister urges action to save flag carrier Garuda
Indonesia’s Tourism Minister has called for urgent action to safeguard the immediate future of cash-strapped Garuda Indonesia.
Sandiago Uno said another wholesale restructuring is its only hope of surviving its current financial plight.
“We should collectively back the restructuring plan since Garuda is a national flag carrier. We must do anything to save Garuda,” he said.
He said restructuring is the most viable option on the table.
Other options have been put forward such as allowing state-owned charter airline Pelita Air take over Garuda’s operations.
Garuda Indonesia Director Irfan Setiaputra said the company is continuing steps to improve its business performance, and has been in talks with key creditors for several months.
It defaulted on a large ‘Sukuk’ Islamic loan earlier this year and has been returning planes to lessors to cut expenditure.
The government is reluctant to bail out the airline again given its huge asset-debt deficit.
The airline has few major assets and nearly all its aircraft fleet are leased.
“If we meet a dead-end, we will close Garuda down because injecting more state money is impossible given the company’s massive debt loads,” Kartiko Wirjoatmodjo, deputy for the state-own enterprises minister said last week.
Kartiko added that even if it survives this latest crisis, it will emerge much smaller and long haul routes will likely be shelved.
Bloomberg reported this week that it needs about $1 billion just to stay afloat and the government is open to relinquishing its majority stake, Wirjoatmodjo says.
“We continue to negotiate and communicate with all creditors to reach the best settlement and debt restructuring that will improve the company’s fundamental performance,” Garuda corporate secretary Mitra Piranti said in a recent filing to the Indonesia Stock Exchange.
Garuda is still regarded as a quality airline but has been hampered by poor leadership for years.
Two former CEOs have been convicted of fraud and corruption in the past couple of years.
Learn more about : Wonderful Indonesia ( N. America ) Wonderful Indonesia ( Asia Pecific ) Wonderful Indonesia ( United Kingdom )
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt