Indonesia Drafts $1 Billion Rescue Plan to Save Flag Carrier
- Plan includes $500 million sukuk restructuring, new loans
- Garuda Indonesia capital injection ruled out by government
Photographer: Dimas Ardian/Bloomberg
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Indonesia is finalizing a $1 billion financial bailout plan for its flag carrier to help it stave off a debt default after the coronavirus crisis forced the airline to ground most of its planes.
The rescue plan includes a proposal to restructure PT Garuda Indonesia’s $500 million sukuk due next month and arrange new bridge loans of as much as $500 million to meet working capital requirements for three to six months, Deputy State-Owned Enterprises Minister Kartika Wirjoatmodjo said.