Jakarta-based PT Garuda indonesia Tbk (GIAA) is enacting a series of austerity measures as it struggles to regain financial stability following years of turbulence, including a 2019 bankruptcy filing and pandemic-related travel restrictions. In a public display of commitment to restructuring, the airline’s leadership announced a voluntary 10% salary reduction across its directorate, a move presented Monday, December 1, 2025, before the DPR (House of Representatives). These cuts are part of a wider effort impacting staffing levels and operational procedures as the airline seeks to return to profitability.
Jakarta –
PT Garuda Indonesia Tbk (GIAA) is implementing cost-cutting measures, including a 10% reduction in director salaries, as part of a broader effort to stabilize the financially challenged airline. The move reflects a commitment from leadership to share the burden of restructuring, according to company officials.
Glenny H Kairupan, CEO of GIAA, stated he proposed the salary reductions to the board of directors during a recent meeting.
“I asked the directors, ‘How about the directors of Garuda voluntarily taking a 10% pay cut, because a leader must be willing to sacrifice? Would you agree?'” Kairupan said during a hearing with Commission VI of the DPR (House of Representatives) in Jakarta on Monday, December 1, 2025.
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The proposal was met with unanimous approval from the board, Kairupan confirmed. “Everyone agreed,” he said. “This demonstrates our commitment to improving the organization, and our willingness to make sacrifices to do so.”
In addition to the executive salary cuts, Garuda Indonesia has streamlined its operations by reducing staffing at its Japan office from two to three individuals down to one. This decision followed reports of sudden and unexplained changes to ticket reservations.
“I asked Human Capital to replace the representative in Japan. It was done immediately, and the position was recalled. We’re also realizing efficiencies in personnel placement, reducing our representation from two or three people to just one. We’ll rely more on local staff, as we’re currently covering allowances, housing, and other expenses,” Kairupan explained.
Garuda Indonesia is also focused on fostering a new company culture through a set of principles and values that employees are expected to embrace.
“We are continuously monitoring these efforts, and we hope to see a positive change within Garuda during the first 100 days,” Kairupan added.
Thomas Sugiarto Oentoro, Deputy Director of Garuda Indonesia, emphasized the company’s ongoing efforts to improve its financial health by reducing operational costs.
“Effective cash flow management is crucial right now. We are in a critical operational condition, largely due to the limited availability of serviceable aircraft, which is impacting our revenue,” Oentoro stated.
One key area of cost savings has been in aviation turbine fuel (avtur) consumption. Garuda Indonesia has reportedly saved 21 million liters of avtur through efficiency measures.
“We’ve implemented a practice of using only one engine during taxiing to conserve fuel, resulting in savings of approximately 21 million liters,” Oentoro said.
(shc/hns)
