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Indonesia lawmakers back $522 million capital top-up for airline Garuda

Indonesian lawmakers on Friday approved the government's plan to top up Garuda Indonesia's capital by 7.5t rupiah ($522.43m) this year, once the carrier reaches a debt settlement with creditors, a government official said. The approval was decided by a group of lawmakers tasked to deliberate on the government's strategy to save the debt-laden airline, said Arya Sinulingga, an aide to the state-owned enterprises minister. A wider vote is typically needed to finalise the decision. Garuda's CE Irfan Setiaputra thanked lawmakers for the decision, describing it as an important part of Garuda's restructuring. The flag-carrier has been trying to renegotiate its debt with creditors under a court-led process since the end of last year. The restructuring has been extended twice to verify $13.8b worth of claims against it, compared with a total of $9.8b liabilities that Garuda said it has on its books. The court has given Garuda until May 20 to finish verification and negotiations with creditors. The state-owned enterprises ministry in a statement said the lawmakers asked the ministry and Garuda to implement its business plans, which should improve the its finances in the future. It did not elaborate. Garuda said in a statement as part of the deliberation, the lawmakers' group "has conveyed its understanding of a potential involvement of a strategic investor to support the restructuring" of its performance.<br/>