Indonesia lawmakers back 7.5 trillion rupiah capital top-up for airline Garuda

INDONESIAN lawmakers on Friday (Apr 22) approved the government's plan to top up Garuda Indonesia's capital by 7.5 trillion rupiah (S$710.8 million) this year, once the carrier reaches a debt settlement with creditors, a government official said.

The approval was decided by a group of lawmakers tasked to deliberate on the government's strategy to save the debt-laden airline, said Arya Sinulingga, an aide to the state-owned enterprises minister.

A wider vote is typically needed to finalise the decision.

Garuda did not immediately respond to request for comment.

The flag-carrier has been trying to renegotiate its debt with creditors under a court-led process since the end of last year.

The restructuring has been extended twice to verify US$13.8 billion worth of claims against it, compared with a total of US$9.8 billion liabilities that Garuda said it has on its books.

The court has given Garuda until May 20 to finish verification and negotiations with creditors.

The state-owned enterprises ministry in a statement said the lawmakers asked the ministry and Garuda to implement its business plans, which should improve the its finances in the future. It did not elaborate.

Billionaire businessman Chairul Tanjung, Garuda's second-biggest shareholder through its company PT Trans Airways, has also said he wants to top-up his investment. REUTERS