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  • Free from Government Intervention, Garuda Indonesia’s Performance Increases

Free from Government Intervention, Garuda Indonesia’s Performance Increases

  • 28 July 2010, 09:55 WIB
  • By: Marwati
  • 17016


Restructuring policy proved a positive influence on the performance of national airline Garuda Indonesia. The correct strategy, guided changes and entrepreneurship orientation made the process of restructuring in 1998-2001 and 2005-2008 work well. Since 2007, Garuda Indonesia began to generate positive operating profit of IDR 221.2 billion, increasing to IDR 1187 billion in 2008 and IDR 1200 billion in 2009.

It was conveyed by the former president director of Garuda Indonesia, Abdul Gani, in the Graduate School's doctoral promotion exam, on Saturday (24/7). Acting as promoter was Prof. Dr. Mardiasmo, MBA. Ak., and co-promoters Prof. Gunawan Sumodiningrat, M.Ec., Ph.D., and Prof. Dr. Yeremias T. Keban, MURP.

In defending the results of his dissertation entitled The Effect of Restructuring on Performance Improvement of PT. Garuda Indonesia, Abdul Gani said that guided changes have positive and significant effect on the performance of Garuda Indonesia today. According to Abdul Gani, the motivating leadership is the most appropriate indicator applied in the airline company, in addition to the anticipatory and inspirational leadership.

“A right leader will be able to bring Garuda to achieve positive results, but on the contrary, improper ones will bring the company into a downturn," said Abdulgani who graduated as 1235th doctorate with cum laude distinction. Then he continued, the right leader is not only able to plan better strategy, but also able to run it consistently, moreover, able to transform company values to all employees as followers and adaptive staff.

In the meantime, the correct strategy is admitted by Abdulgani as very influential on the performance of Garuda Indonesia. It is because all companies need a strategy that can run optimally to achieve the goals.

Meanwhile, the entrepreneurship orientation becomes the critical success factors in achieving high performance. Because the competence itself can not fully be implemented in the form of improved performance if it is not equipped with entrepreneurial orientation. "To be sustainable, Garuda Indonesia, therefore, must be profitable and independent in the future," he said.

Before the team of examiners, Abdulgani conveyed that a Garuda Indonesia President Director shall be selected from those who truly have a business vision and can translate an appropriate strategy to company condition and its environment. Despite its state-owned status, he added, Garuda management needs to be released from the government interventions, legislature and other parties that could affect adversely on the performance of the company. In his opinion, the first and second restructuring can work well because the management is free from various interventions.

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