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Garuda Prepares to Go Public in 2009

Garuda Strives to Build Value on its Books Before Offering 30-40% of its Shares to the Public in 2009.

(5/18/2008) Indonesia's Minister of State Owned Enterprises, Sofyan Djalil, has confirmed that the Government will not inject more funds into the National Carrier Garuda Indonesia, particularly given the improving business performance of the National Carrier.

The Minister made his pronouncement at a signing ceremony of a memorandum of understanding between the Airline and Jasindo - one of the Company's insurers.

Pointing to the Rp. 250 billion (US$27.2 million) profit booked by Garuda in 2007, Minister Djalil is optimistic that the State-owned airline is now operating on a more viable business footing than in years past. Speaking at the same occasion, the CEO of Garuda, Emirsyah Satar, confirmed that the airline had earned a profit in the first quarter of 2008. The amount of the profit will, however, only be available in mid-May when the Company's accountants make their formal financial report.

Garuda to Go Public in 2009

Meanwhile, the National News Agency Antara reports that Garuda will make an initial public offering (IPO) of shares in 2009. Satar said that intense efforts were underway to maximize the value of the Airline before launching the share offer. In addition to improving operational efficiencies across the board at Garuda, the Airline is continuing efforts to restructure its massive debt.