Contribution of State Owned Company for National Economic Growth

Hi there.

Now I would like to share an article that was submitted few months ago for my graduate scholarship in Universitas Indonesia. Nevertheless, I am not confident about the calculation (you could download it here) so please give me feedback. Noteworthy is all data and values were extracted from annual reports of the company, which you could download it here.

Since 2005, Garuda Indonesia group began a program of rehabilitation in order to boost its financial condition. The need to change the internal work culture and the challenges of regional economic conditions that had drawn in 2008, it is slowly but surely, the corporate income was improved. It can be seen at the company's revenue contribution to the economic growth of the nation. Note the picture below.

In general, the company's contribution to the nation's economic growth is quite good, between 0.3% to 2.7% except in 2006 and 2009 with a negative contribution due to the decrease in operating revenues. These decreases resulted from the consolidation program executed by management in order to ensure continuity of company production level in the long run.

In 2006, the company decided to stop the negative cash flow by phasing-out dozens of classic aircraft and in a timely manner began to operate new generation aircrafts. In 2009, the competition from low cost carriers are somehow very tight resulted in the company's domestic market share eroded to 27.4% from 29.5% in the previous year even though the company had been trying to reduce passenger fare yield. The result was a decrease in total revenue.

By improving the performance of production level and maintain a strict financial sustainability, it is expected that contribution of Garuda Indonesia is significantly increasing to the nation's economy.

Good is not good when better is expected - Mr. Emirsyah Satar, President Director of Garuda Indonesia.