Garuda Indonesia is considering either pulling back or axing its unproductive subsidiary companies. (Image via Kompas.com)

Garuda Indonesia to dismiss unproductive subsidiary

Alfonsus Adi Putra
Politics & Economic
Economic
Jan 24, 2020
2030
Indonesia’s state-owned airline, Garuda Indonesia (Persero) Tbk., revealed its plan to ax its unproductive subsidiary companies. Speaking at the Garuda Indonesia Headquarter, the President Director of Garuda Indonesia, Irfan Setiaputra, confirmed the plan.

Nevertheless, Irfan said that it is not impossible that Garuda Indonesia will not ax some but pull them into the parent company after reviewing the previous management. The president director said that he had pocketed some recommendations for some subsidiaries to be pulled back.

The plan came after the command given by Indonesia’s Minister of State-Owned Enterprises (SOEs), Erick Thohir, to consolidate the subsidiary companies and to give opportunities for other enterprises to join.

For that, the enterprises will actively participate in Erick’s plan under the Center for Private Investment (PINA). Irfan revealed that the process has entered the discussion stage.

Regarding how the plan might affect Garuda Indonesia’s profit and expenditure, Irfan could not comment any further. However, he stated that internal discussion is underway to bring a solution to the plan. One thing for sure, Garuda Indonesia will not make deliver any subsidiary company.

Previously, the SOEs Minister issued a moratorium of the subsidiary and joint venture enterprise establishments to evaluate the subsidiary company of the SOEs. The result was Erick saw that many of the subsidiary companies were not in line with the main business model by the parent SOEs.

Source: https://bit.ly/2TYNHYe

Business , Politics , Economy , SOE , Aviation , Airline , ASEAN , Indonesia , Garuda-Indonesia