Kamis 04 Dec 2014 16:45 WIB

Garuda needs additional capital worth 700 million USD

Rep: Maman Sudiaman/Satya Festiani/ Red: Yeyen Rostiyani
Garuda Indonesia's plane is seen in Soekarno Hatta Airport in Banten. (illustration)
Foto: Republika/ Wihdan
Garuda Indonesia's plane is seen in Soekarno Hatta Airport in Banten. (illustration)

REPUBLIKA.CO.ID, JAKARTA -- State owned flag carrier Garuda Indonesia needs additional capital worth 700 million USD. Capital injection will help the company growing.

"Capital injection depends on the stakeholder if they want the company to grow," Executive Director of Garuda Indonesia, Emirsyah Satar, said recently.

Without capital injection, Garuda will not grow according to target. Garuda faces risk of loss as the price of aviation fuel is increasing. The fuel price, which costs 40-50 percent of aviation operational cost, is soaring in Indonesia. Aviation fuel price in Indonesia is 12 percent more expensive than that in Singapore, Malaysia and Bangkok.

"Our airlines are suffering," he said. Garuda and other airlines in Indonesia National Air Carriers Association (INACA) have talked on the matters with Ministry of Finance and other related stakeholders.

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