PT Garuda Indonesia Tbk’s problems are increasing in line with the continued weakening of the rupiah against the US dollar. Some 65 percent of the airline’s income is in rupiah, while the cost of leasing airplanes is in dollars. It also has short-term debt of US $ 2.31 billion. These issues are a major concern for Garuda’s management and shareholders ahead of the extraordinary general meeting of shareholders on Wednesday (12/9).
The largest portion of the state-owned airline’s short-term liabilities is bank debt worth US$ 1.02 billion, which surged 18.22 percent from US$ 862.79 million in the first half of 2017. Garuda’s biggest creditors consist of five banks: Bank Rakyat Indonesia (US$ 197.83 million), Bank Negara Indonesia (US$ 128.14 million), Bank Panin (US$ 125 million), Bank Mandiri (US$ 123.88 million), and Industrial and Commercial Bank of China (US$ 111.82 million).