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Jakarta Post

Finance minister demands answers as Garuda losses mount

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, August 31, 2017   /   11:24 am
Finance minister demands answers as Garuda losses mount Finance Minister Sri Mulyani Indrawati (AP Photo/Tatan Syuflana)

Finance Minister Sri Mulyani Indrawati has said she will look into the rising losses of flag carrier Garuda Indonesia to find out whether anything was wrong with its investment strategy.

Garuda Indonesia is one of 24 state-owned enterprises (SOEs) suffering losses, as announced by SOE Ministry on Wednesday. The airline recorded US$282 million in losses in the first half of 2017, swelling from $61.92 million in the corresponding period of last year.

“If the mistake is fundamental in its management, we will manage it better,” said Sri Mulyani during a hearing with House of Representatives Commission VI, which oversees trade, industry and investment.

Read also: 24 state-owned enterprises record losses in H1

Other reasons for the losses could include losing out in competition or making wrong investments, she said in Jakarta on Wednesday, as reported by

The minister said that because of the losses, Garuda Indonesia would not be transfering any dividends to the state in 2018.

The other companies include Merpati Nusantara Airlines, State Logistics Agency (Bulog), PT Indofarma, PT Energy Management Indonesia, PT Hotel Indonesia Natour, postal firm PT Pos Indonesia (Persero), film production company Perum Produksi Film Negara, publication firm PT Balai Pustaka, shipbuilder PT PAL Indonesia and shipyard operator PT Dok dan Perkapalan Surabaya. (bbn)