Garuda Indonesia Debt Raised Up to U.S. $ 513 Million

The total amount PT Garuda Indonesia Tbk airlines debt rose up to 7.7% in 2011 or U.S. $ 513 million or IDR 4.6 trillion, from U.S. $ 476 million in 2010. This was stated by the Garuda Finance Director, Elisa Lumbantoruan.

"The debt increase is because there is a loan of U.S. $ 50 million in 2011 from Citibank, UBS, and Indo Exim," he said.

With the huge amount of this debt, said Elisa, PT Garuda Indonesia has allocated U.S. $ 131 million in 2012 budget to pay the mortgage.

Garuda Indonesia and Debt

"We hope that there is no more loan again this year, so that the total debt remains U.S. $ 400 million," she said.

Regarding the funding sources to pay the debt, the company will take IDR 2.5 trillion from operating cash flow, then the remaining funds from the IPO, and new loans. "It is still plan for the new loan, as it should be approved by the AGM meeting," she said.

Meanwhile, according to Garuda Chief Director, Emirsyah Satar, debt is a reasonable thing in business. "The debt is not against the law. Moreover, the debt is used for business development," he said.

Emirsyah stated that it is impossible that there is no debt in developing the business. "It may continue to grow with equity. The most important thing is the company's ability to pay," he said.

Emirsyah tried to illustrate, in 2006 Garuda's revenue reached U.S. $ 1 billion, with the debt of U.S. $ 900 million. But now the income reached IDR 27.1 trillion, the debt is U.S. $ 517 million. "So, there is a balance, it is sustainable," he said.

Related to the Garuda Indonesia performance in 2011, the company posted revenue of IDR 27.1 trillion from IDR 19 trillion in 2010. For 2012, the revenue is expected to increase 21 percent. "We targeted total numbers of passengers up to 22 million people in 2012. Last year, it was 17.1 million people," said Emirsyah.

Source: Detik

Nike Paid Out $ 1 Million Overtime To The Workers

Sportswear company, Nike, has finally approved the provision of overtime pay to its workers in Indonesia. The payment of the U.S. $ 1 million or approximately IDR 9 billion overtime will be paid to 4500 workers at PT Nikomas in Serang, Banten.

Nike and Overtime Workers

Representatives of the union stated that the overtime payment for 593,468 working hours have not been paid for 2 years. If Nike continues this to happen, it could create a bad precedent.

"This condition has the potential to cause workers movement in Indonesia," said Chairman of the Indonesia National Workers Union, Bambang Wirahyoso.

Bambang said, the union he led is prepared to fight for the rights of workers everywhere who have to work overtime without getting the extra pay.

The agreement between Nike and the workers at PT. Nikomas occurred after 11-months negotiations. In its statement, Nike said they are ready to protect the rights of its workers. Nike is ready to continue monitoring and supporting so that the situation becomes conducive.

This U.S. sportswear company also offers training programs to the workers in Nikomas. This offer gets positive response from the union.

Actually, the workers in Nikomas have worked overtime without getting paid during the last 18 years. But the Indonesian law only allows the workers to recover their rights for only the last 2 years.

Source: Detik

Rosa’s Lawyer Said: 'Big Chief' Came Out Due To Debt Case

The story behind the mystery figure 'Big Chief' is starting to be clearer slowly. He was apparently not directly related to the SEA Games project in Palembang, but he arises because of the debt case.

"Ketua Besar" 

"Big Chief is related to the debt, not to the project," said Mindo Rosalina Manulang attorney, Muhammad Iskandar.

According to Iskandar, the details regarding the debt affairs will be disclosed at next Monday hearing, January 16, 2012. She will disclose regarding who else is involved in it.

"The certain thing is there is a personal debt. In the communication between the two ‘persons’, one of them mentioned that ‘I was called by Big Chief’," he explained.

On that occasion, Iskandar also reiterated about the term 'Big Chief'. According to him, in the case of Nazaruddin and Rosa there is only 'Big Chief' and 'Chairman', no other terms such as 'Big Boss' or 'Great Leader'.

"Everything be explained, just wait for the perfect timing," Iskandar promised.

Previously, Nazaruddin ever uncovered few terms such as 'Big Boss' and 'Great Leader' in SEA Games bribery case regarding the athletes homestead projects. These terms will be further explained by Rosa.

Source: detik