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Dahlan will evaluate Garuda Indonesia financial performance

13 Februari 2014
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Dahlan will evaluate Garuda Indonesia financial performance
Sejumlah penari menyambut kedatangan penerbangan perdana pesawat Citilink di Bandara Halim Perdanakusuma (ANTARA FOTO/M Agung Rajasa)

Financial performance of Garuda slumped

IQPlus - State Enterprises (BUMN) Minister Dahlan Iskan said it will conduct an evaluation of the financial performance of PT Garuda Indonesia, which experienced a decline in earnings in 2013.

"This is now in our evaluation again, why the financial performance slump," said Dahlan, sighting on the sidelines of the abattoir PT self-reliance in the village Gandasari, Cibitung,Bekasi,West Java, on Wednesday.

According to Dahlan, he already knew that the financial performance of Garuda slumped, mainly due to falling value of the rupiah against the U.S. dollar.

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"I hear they have taken square off and would raise the 'fuel surcharge', due to a surge in the U.S. dollar coupled aviation fuel price hikes," he said.

He also invited the Garuda management to find ways to address the decline in the company's performance.

Previously reported, during the year 2013 Garuda posted operating income of 3.72 billion U.S. dollars, up 7 percent over 2012 revenue of 3.47 billion U.S. dollars.

But at the same time, the airline "red plate" is not able to withstand the decline in operating profit reached 66.4 per cent to 56.4 million U.S. dollars, compared to the previous amount of 168.1 million U.S. dollars.

As a result, net income fell 89.8 percent from 110.8 million U.S. dollars in 2012 to 11.2 million in 2013.

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