Garuda Indonesia's Long-Term Liabilities Reached Rp 100 Trillion in September 2021

PT Garuda Indonesia (Persero) Tbk is facing a financial crisis. The Indonesian government-owned airline has suffered significant losses in recent years. Some of Garuda Indonesia's debts and obligations are already due or will soon be due, burdening the finances of the issuer with the stock code GIAA on the exchange.

According to published financial reports, Garuda's long-term liabilities reached US$7.05 billion, or approximately Rp 100.8 trillion (using an exchange rate of Rp 14,307.01 per US$) at the end of September 2021. This figure has already been adjusted to exclude the portion due within one year.

Specifically, GIAA's long-term debt includes lease liabilities of US$3.96 billion, estimated costs for aircraft return and maintenance of US$2.71 billion, and long-term loans of US$378.72 million.

The state-owned enterprise (SOE) operating in the air transportation sector incurred a loss of US$1.66 billion during the period from January to September 2021. These losses have further increased its accumulated deficit.

The government-owned airline's total assets amounted to only US$9.42 billion in September 2021, while its liabilities reached US$13.03 billion. Therefore, the SOE's equity is recorded at a negative US$3.61 billion.