Accelerating Business Growth, GMF Forms New Subsidiary

Jakarta, February 12, 2019 – PT Garuda Maintenance Facility Aero Asia Tbk. (“GMF”, Issuer Code: “GMFI”) accelerates its business growth by forming two new subsidiaries. The new subsidiaries are PT Garuda Daya Pratama Sejahtera (GDPS) and PT Garuda Energi Logistics & Commercial (GELK). These subsidiaries serve as business differentiation progression, which will later support GMF’s main business activities: aircraft maintenance business and Garuda Indonesia Group. GDPS officially established on January 25, 2019 is a service company that provide human resources for aviation industry. The joint venture between GMF and GMF AeroAsia Employee Cooperation (Kopkar GMF) targets on high need in highly qualified human resources in aviation industry, such as aircraft maintenance services, ground services and flight security. GMF President Director, Iwan Joeniarto, on behalf of majority shareholders, said, as initial step, GDPS will target HR needs within the scope of Garuda Indonesia Group. “Such necessity can be accommodated by GDPS’ strength, having strong network in aircraft maintenance business. Moreover, people in GDPS management are supremely competent in training highly qualified human resources in aviation field, “said Iwan.

GDPS establishment also serves as efficiency measure in human resources supply, which has been implemented within Garuda Indonesia Group. By establishing a subsidiary solely focused on providing skilled HR services, GDPS is anticipated to improve work quality provided by outsourced employees. Iwan said, the next tactical step was to start providing services to GDPS customers, including GMF. It is expected that within the next 5 years, GDPS can show sustainable growth through new technology application and comprehensive services, in terms of employment to its customers. Iwan also added that in the future, GDPS is expected to reach broader market than Garuda Indonesia Group’s circle.


Enriches Business Portfolios

Not stopping at one, GMF has also strengthened its position in aircraft maintenance industry by forming another subsidiary named PT Garuda Energi Logistics Komersial (GELK). It deals in aircraft parts and engines trade, spare parts and aircraft engines lease, general trade, electricity supply, fuel distribution and waste management. GELK was formed to support flight operations at competitive prices. The subsidiary was formed by joint venture between GMF and Aerowisata with a 99%: 1% share composition. GMF President Director, Iwan Joeniarto, said that the formation of GELK was to expand aircraft maintenance services business support, generating profit for the group and its affiliates in the process. “At GMF, there is already trading business. We formed another to facilitate more fluid business activities, aircraft parts lease and fuel distribution likewise. Also, residual waste from production can be managed into renewable energy for electricity supply. Such business models generate many benefits to the company and the environment,” said Iwan. Multiple steps in developing such business portfolios will resume in first semester of 2019. This corporate action is a means of accelerating steps towards achieving the vision of becoming Top 10 MRO in the world.