SOE Minister Predicts Aviation Industry to Recover in 6 to 8 Months

TheIndonesia.co - The Minister of State-Owned Enterprises (SOE) Erick Thohir has recently predicted the national aviation industry to recover in the coming six to eight months, as positive trend has also started in several countries.

“It has becoming normal in many countries, and it will take about six to eight months [for the aviation] to be normal in Indonesia. Air transport will surely be an alternative for business and tourism,” Thohir said on Wednesday, April 27, as reported by Antara.

And to welcome the change, Thohir said the Indonesian government is looking to speeding up the rescue mission to save state-owned airline Garuda Indonesia that was declared “technically bankrupt” by the Ministry of SOE back in November.

“We encourage Garuda to be handled optimally – of course through proper settlement because we don’t want to be put under pressure by lessors,” Thohir affirmed.

He was also cautious of lessors with high lease rate and corruptive tendency. Therefore, he said his Ministry also works on other solutions to accelerate aviation recovery in Indonesia, including by working to obtain postponement of debt payment obligations, or PKPU, which will be decided on May 20.

Upon the announcement of the decision, the Ministry will evaluate what’s necessary to create an ideal supporting infrastructure, especially in national aviation industry. Thohir also didn’t eliminate the possibility of a market intervention if it’s considered urgent.

Lastly, according to him, the recovery rate at airports across Indonesia has reached 88 percent, which is largely encouraged by Ramadan and Idul Fitri holiday where millions of Indonesians go on mudik trip to celebrate the big days in their hometown.

“Another 12 percent and [it returns to] normality,” he concluded.