STRATEGIC MANAGEMENT

ASSIGNMENT

By:
Osfred Yuda Mewengkang
SIN: 15061103152
Class: VII D

About: Garuda Indonesia Company

Garuda Indonesia
Company Profile:

1) Company Vision: Value-Driven Aviation Group, Bringing Indonesian Hospitality to the

World (US$3.5 Billion)

2) Company Mission:

Shareholder : Maximize group value for better shareholder return among regional

airlines,

Customer : by delivering excellent Indonesian hospitality and world best experiences to

customers,

Process : while implementing cost leadership & synergy within group,

Employee : and by engaging passionate & proud employee in one of the most admired

company to work for in Indonesia.

3) Core Business: Airline flight and ticketing.

4) History:

Indonesia’s commercial aviation history began when Indonesian people was in

struggle to defend their independence. The first commercial flight from Calcutta to
Rangoon was made on January 26, 1949, using a DC-3 Dakota aircraft with the tail

number of “RI 001” and the name “Indonesian Airways”. In the same year, on December

28, 1949, another DC-3 aircraft registered as PK-DPD and painted with “Garuda

Indonesian Airways” logo flew from Jakarta to Yogyakarta to pick up President

Soekarno. This Was the first flight made under the name of Garuda Indonesian Airways.

The name "Garuda" was given President Soekarno, which he quoted from a Dutch poem

composed by a popular poets that time, Noto Soeroto; "Ik ben Garuda, Vishnu's vogel,

die zijn vleugels uitslaat hoog bovine uw einladen", meaning "I am Garuda, Vishnu's bird

which spread its wing high above your archipelago".

Then, in a year later, in 1950, Garuda Indonesia officially became a state owned

company. During that period, the company operated a fleet of 38 aircrafts comprising 22

DC-3, 8 Catalina flying boats, and 8 Convair 240. Garuda Indonesia fleet continued to

grow, and eventually made its first flight to mecca carrying Indonesian hajj pilgrims in

1956. In 1965, the first flight to European countries started was made with Amsterdam as

the final destination.

1980s

Garuda Indonesia fleet and operations underwent large scale revitalization and

restructuring throughout the 1980s. This prompted the Company to develop

comprehensive training programs for its air and ground crews and established a dedicated

training facility in West Jakarta, named the Garuda Indonesia Training Center.

1990s
 In Addition the Company also built an Aircraft Maintenance Center at Soekarno-

Hatta International Airport. Then in the early 1990s, Garuda Indonesia developed a long-

term growth strategy which was applied until the year 2000. The Company also

continued to expand its fleet placing Garuda Indonesia among the 30 largest airlines of

the world.

2000s

Along with initiatives in business development in 2005, a new management team

took office and formulated new plans for the future of the company. The new

management undertook a comprehensive re-evaluation and overall restructuring with the

objective improving operational efficiency, regained financial stability that involved

efforts in debt restructuring, increased awareness among employees concerning the

importance of service to customers and, most importantly, revived and revitalized the

Garuda Indonesia spirit.

2010s

The successful completion of the company’s debt restructuring program opened

the way for Garuda Indonesia to go public on 11th February 2011. The company

officially became a public company after the initial public offering of 6,335,738,000

shares. The company’s shares were listed on the Indonesia Stock Exchange on February

11, 2011 with code GIAA. This was one important milestone after the company
completed the transformation on its business through hard work and dedication of all

parties.

2017

Presenting a new level of service excellence in air travel, Garuda Indonesia, the

national airline of Indonesia, seamlessly connects 83 destinations worldwide, including

exotic locations in the beautiful archipelago of Indonesia all at once.

With more than 600 daily flights and a fleet of 196 aircrafts by January 2017,

Garuda Indonesia proudly serves its passengers with the award-winning distinct service

“Garuda Indonesia Experience”, which highlights Indonesia’s warm hospitality and rich

diverse culture.

To provide better and more convenient services, Garuda Indonesia continuously

strives through its ongoing transformation program. The progress of the transformation

can be seen from the achievement of a Skytrax’s 5-star Airline rating as well as the

winning of the prestigious “The World’s Best Cabin Crew” for four consecutive years in

2014 to 2017, “The World’s Most Loved Airline 2016” and “Best Economy Class” award

in 2013, also from Skytrax.

*last update: July 2017

5) Environment: The environment aspect which has become the CSR pillar is part of

Garuda Indonesia’s commitment to be the Green Airline and help prevent or minimize

the impacts on the environmental preservation. The company’s environmentally-friendly

commitment has been reflected on programs under Garuda Indonesia Cares for

Environment, such as:

1. Recycled Books:

It is a continuous project started in 2010. Garuda Indonesia is aware of the

fact that paper derived from wooden fibres should be preserved. With that

understanding, and as part of its contribution to environment, Garuda Indonesia

has started an initiative to gather used paper/documents such as tickets and other

kinds of documents and process them into recycled books.

Through the years, Garuda Indonesia has generated 177 tons of recycled

paper which in turn served as base material for producing 1.500.000 note books

and 41.000 memo pads. These products are then utilized for office purposes and

also granted to various schools and educational institutions in Indonesia.

2. More Passengers More Trees Program:

According to data from the International Air Transport Association

(IATA), the air transportation industry contributes to 2% carbon emission of the

world and to the 3% of climate change. As an effort to reduce the impact, Garuda
Indonesia has conducted several actions in terms of technology, operation and

infrastructure (see Garuda Green Efforts). The More Passengers More Trees

Program has become part of Garuda Indonesia’s commitment to keep up with the

increasing number of passengers by planting more trees as a real effort to reduce

the carbon emission. Recent events are as follows:

● One Passenger One Tree Program at the Sebangau National Park in

Central Kalimantan.

Garuda Indonesia, in cooperation with WWF Indonesia, the Department of

Forestry and the Provincial Government of Central Kalimantan, participates in

peat-swamp forest rehabilitation with a high ecological value in the Sebangau

National Park, Central Kalimantan. The rehabilitation is conducted by planting up

to 100,000 trees in an area that covers 250 ha of land. The funding comes from

the sales of tickets on international routes.

● Ecotourism in Karang Tengah Village, Yogyakarta

Garuda Indonesia cooperates with Yogyakarta Royal Silk Foundation to

conduct the community empowerment program for silkworm craftsmen in the

countryside, with Ecotourism as its theme, by planting cashew and mahogany

trees in Karang Tengah Village, Bantul, Yogyakarta. The number of trees planted

is 50,000, with the funding established from the sales of Garuda tickets on the

Japan route.

● Mangrove planting on Sedyatmo Toll green lane, Pantai Indah Kapuk

 Garuda Indonesia has planted 18,600 mangrove trees on Tol Sedyatmo

green lane in Cengkareng- Banten using guludan methods mangrove

rehabilitation technique in the protected forest area covered by water. This event

has been recorded in the Indonesian Record Museum (MURI) as Mangrove

Planting Using Guludan System with most seeds recorded: 18,600 seeds.

● Javanese-Balinese Vegetation Planting at Ecopark Cibinong Science

Center – LIPI

Garuda Indonesia has conducted West Javanese vegetation planting of 59

specimens in total of 10,000 trees in at Ecopark Cibinong Science Center – LIPI,

Cibinong, Bogor - West Java through the 1st stage of the “Javanese-Balinese

Vegetation Planting”.

In 2013, the program held in cooperation between Garuda Indonesia,

Indonesian Biodiversity Foundation (KEHATI Foundation) and Indonesian

Institute of Sciences ( LIPI ), proceeded to the 2nd stage with the addition of

another 10,000 trees, bringing the total planting of 20,000 trees in the whole

program.

● Reforestation by Arakundo River in Nanggroe Aceh Darussalam (NAD)

Garuda Indonesia has planted 24,000 seeds on an area of 250 ha by

Krueng Jambo Aye River in Arakundo, Pantai Bidari Sub-district, Nanggroe Aceh

Darussalam (NAD) under cooperation program with NAD local government and

Leuser Indonesia Foundation.

● Tree Planting in Padang, Sukabumi and Calang

Garuda Indonesia has conducted tree planting in the vicinity of tourism

spots such as Air Manis Beach in West Sumatra. The trees planted are Pinang

(Areca catechu), Pinang Tupai and Cemara Laut(Casuarina Equisetifolia) in total

amount of 1,000 trees. Similar events have been organized by Garuda Indonesia

in Sukabumi and Calang in Aceh, planting 5,000 seeds of Trembesi (Samanea

Saman) to support the reforestation and environmental improvement.

● Mangrove planting in Selat Nasik, Bangka Belitung

To demonstrate its concern toward the environment, particularly coastal

erosion caused by the damaged mangrove forest in Bangka-Belitung area, Garuda

Indonesia organized Mangrove Planting Program through construction of nursery

and planting in Petaling Village, Nasik Strait. This program is part of the

mangrove utilization and conservation initiative, which at the same time

establishes Nasik Strait as educational travel destination. In addition, the program

also supports production of mangrove crabs which inhabits Nasik Strait area.

Among the activities that took place were:

● a. Planting 50,000 seeds of mangrove

● b. Replanting 10,000 seeds of mangrove

● c. Nursery 10,000 seeds of mangrove

The program also educates the students of junior high schools and

vocational schools as well as general public and visitors regarding flora and fauna
conservation as well as poverty alleviation. Through this program, potential of

Petaling Village to become Tourism Village will improve, especially in terms of

its beautiful nature potential and mangrove crab production which could attract

prospective visitors

● Coral Restoration and Mangrove planting in Selat Ambon

The islands of Maluku has been long recognized for its beauty. Garuda

aimed to enhance Maluku potential for tourism and the local economy of its

people through the Coral conservation and Mangrove Plantation program done in

early 2017. Garuda planted 18,200 mangrove seeds and 2,400 coral reefs at Pantai

Batu Kuda in the hope that they would support the economy and help improve the

ecology of the sea and ultimately the local and national tourism.

3. Halon Bank

GMF AeroAsia (a subsidiary of Garuda Indonesia) has become the only

Halon Bank in Indonesia since 2000. Halon is included in the ozone-depleting

substance (ODS) group with careful supervision on its production and

consumption, under the Montreal Protocol. There are several types of halon i.e.

Halon 1211, 1301, and 2402. In Indonesia, halon is generally used for fire-

fighting.
 The main activity of the Halon Bank is gathering the unused halon

according to a quality standard. Thereafter, the valid quality halon is distributed to

other essential users. Thanks to this contribution, GMF was awarded with the

Montreal Protocol Award by the United States Environmental Protection Agency

(USEPA) in 2010.

4. Turtle Conservation:

Garuda Indonesia has made contribution to the establishment of turtle

conservation on the coastal line in Gili Indah Village on Gili Trawangan Island,

West Nusa Tenggara, and to turtle conservation in Bangka Belitung. To educate

the public, Garuda Indonesia has also built Counselling and Education Centre for

turtle conservation on Penyak Beach, Bangka Belitung. This is part of the effort

in reviving the love of the public toward endangered marine life preservation.

Recently, Garuda also released 100 sea turtles in the coastal area of Senggigi,

Lombok, West Nusa Tenggara.

5. Jalak (Myna - Leucopsar Rothschildi) Bali Conservation:

Garuda Indonesia cooperates with Bali Safari and Marine Park to build in

Gianyar Regency, Bali. This program has produced 15 Bali Myna, which will

later be released into the wild. Together with Bali Safari and Marine Park, Garuda

Indonesia has also organized Balinese people empowerment and development

program, as well as building education facilities for students and the community
in order to help them apply the Bali Myna conservation activities in their daily

life.

6. Bali Beach Clean-up and Bali Big Eco Weekend:

Garbage has become one of the excessive issues surfacing on the Bali’s

tourism beaches. Through the Bali Beach Clean-up and Bali Big Eco Weekend

pioneered by Coca Cola Amatil and QuickSilver Indonesia, Garuda Indonesia has

started to bring back Bali’s image as one of the faces of Indonesian tourism.

Through Bali Beach Clean-up, Garuda Indonesia has contributed two beach

cleaning machine called Barber Surf Rake used to sweep various garbage off the

sand instantly. These two machines is used to clean up 9.6 km of beach line from

Kuta, Seminyak, Jimbaran, Legian all the way to Kedonganan.

Meanwhile, through Bali Big Eco Weekend, Garuda Indonesia has invited

the local community and tourists to participate in keeping Bali Island clean by

challenging them to collect the most garbage in the vicinity of Kuta, Seminyak,

Jimbaran, Legian and Kedonganan beaches. Garuda Indonesia has also provided

100 seeds of coconut trees and another 100 seeds of Camplung trees for the

beauty and greening effort of Bali beaches. In addition, Garuda Indonesia has also

released 16,000 sea turtles produced by Kuta Beach Sea Turtle Conservation into

their real habitat around Kuta Beach.

7. Cooperation with IATA in terms of Carbon Offset:

 As part of the carbon emission reduction campaign, Garuda Indonesia and

International Air Transport Association (IATA) signed Memorandum of

Understanding (MoU) Carbon Offset in Singapore, 2010. The IATA carbon

Offset program is a ready-to-use tool which can be offered by airlines to the

passengers to compensate the emission reduction contributing to the carbon

reduction projects in developing countries.

Garuda Indonesia will display the offset replacement option on the

company website, and the passengers can decide if they want to compensate for

the emission while making the reservation. Information about reduced CO2,

refunding fee and the emission reduction event will be available on the website.

6. Organization:
1949
7) Marketing:

To grow, at least Garuda Indonesia has four focuses in carrying out marketing

strategies. First, Garuda Indonesia wants to be the most caring airline.

"Here, we bring the hospitality of the Indonesian people in building our services.

Not only services, from the product side we built the image.
 In terms of products, Garuda Indonesia offers the concept of fine dining on the

cloud with Star Chef on Board, new aircraft with an average age of 4.5 years, and their

latest seat innovation, namely Diamond Seat.

"This effort is enough to increase sales but not yet significant. Because Indonesian

consumers still see prices. Compared to tickets it is better to shop. Therefore, here we

want to educate consumers that we want to be the most caring airline.

Garuda Indonesia this year is looking to dominate the domestic market. Third,

Selfie said that the Garuda Indonesia brand wanted to be better known in Europe and

China. This effort is in line with the opening of direct flight routes to London and

Amsterdam.

China was chosen because the market is very large. China is also being the target

market of the Ministry of Tourism to bring tourists, especially to their favorite areas such

as Bali, Lombok and Raja Ampat.

"Next year we might target Australia and Japan. We cannot aim at all countries at

the same time because this speaks of branding and marketing that requires costs.

Fourth, Garuda Indonesia will focus on providing a digitalized travel experience.

This effort is mobilized to target young consumers. Even though Garuda Indonesia

consumers have mostly been the upper middle class with an age range of 25-40 years,

Garuda Indonesia sees the promising potential of young people.

8) Management

BOARD OF DIRECTORS
Pahala Nugraha Mansury

PPosition : PPresident & CEO

DDate and Place of Birth : 018 April 1971, Bogor

EEducation : ● Master of Business Administration, the Stern School of

Business, New York University, USA

● Bachelor in Accountancy, Universitas Indonesia

EEmployment History : ● Director of Finance and Strategy, PT Bank Mandiri (Persero)

Tbk
Nicodemus Panarung Lampe

PPosition : DDirector of Service

DDate and Place of Birth : 919 June 1960, Banjarmasin

EEducation : ● S2 Manajemen Transportasi Udara, Universitas Indonesia

(1996)

● S1 Ekonomi Manajemen, Universitas Sebelas Maret (1985)

Employment History : ● VP Ground Service, PT Garuda Indonesia (Persero) Tbk

● VP Domestic Region 2, PT Garuda Indonesia (Persero)

Tbk

● VP International Region 1, PT Garuda Indonesia (Persero)

Tbk

Helmi Imam Satriyono

Position : Director of Finance and Risk Management

Date and Place of Birth : 25 May 1968, Semarang

Education : ● S2 – MM (Manajemen Keuangan & Perbankan), Universitas

Indonesia, Jakarta

● S1 – Sarjana Matematika, Institut Teknologi Bandung

Employment History : ● Chief Executive, Bank Mandiri (Europe) Limited

● Director of Treasury, Mandiri Sekuritas

● Deputy Head FX Trading, Treasury Group, PT Bank Mandiri

Tbk

Linggarsari Suharso

Position : Director of Human Capital & Corporate Affairs

Date and Place of Birth : 18 August 1961, Jakarta

Education : ● S2 – Master Degree Psikologi Industri dan Organisasi,

Universitas Indonesia, Jakarta

● S1 – Sarjana Psikologi, Universitas Indonesia, Jakarta

Employment History : ● Managing Partner, PDA Consultant

● Partner, Renoir Consulting

● GM Human Resources, PT Bank Permata

Sigit Muhartono

Position : Director of International Commercial and Cargo

Date and Place of Birth : 14 December 1962, Malang

Education : ● S2 – MBA, Saint Louis University, St. Louis, Missouri, USA

● S1 – Teknik Sipil, Institut Teknologi 10 Nopember, Surabaya

Employment History : ● President & CEO, PT Central Pertiwi Bahari

● President & CEO, PT Truba Jaya Engineering

● Vice President, Sintesa Group

Nina Sulistyowati

Position : Director of Commercial for Domestic Business

Date and Place of Birth : 06 June 1964, Bandung

Education : ● Magister Management (MM), Universitas Gadjah Mada,

Yogyakarta

● Bachelor in Management, Universitas Padjajaran

Employment History : ● VP of Strategic Planning & Busienss Development -

Marketing & Trading, PT Pertamina (Persero) Tbk

I Wayan Susena

Position : Director of Maintenance

Date and Place of Birth : 07 February 1968, Surabaya

Education : ● STIE Jakarta

● ITS Teknik Mesin Surabaya

Employment History : ● Director of Base Operation GMF

● VP Base Maintenance GMF

● GM Aircraft Structure Maintenance GMF

● Deputy GM Aircraft Structure Maintenance GMF

● Deputy GM Hangar 3 GA Maintenance GMF

Triyanto Moeharsono

Position : Director of Operation

Date and Place of Birth : 05 October 1959, Bandung

Education : ● S2 Manajemen Transportasi Udara, Universitas Pembangunan

Nasional

● S1 Hukum Transnasional, Universitas Indonesia

Employment History : VP Ground Operations Garuda Indonesia

Chief Pilot B737NG

9) Human Resources Management (HRM):

In the domestic aviation market in Indonesia, Garuda Indonesia is the only airline

with FSC or full service carrier services that have licenses to operate in Indonesia, there
 are several airlines with other domestic LCC or low cost carrier services operating in the

domestic aviation market in Indonesia.

The level of competition in the aviation industry that is quite tight makes every

company that plays in it compete to create the best value for its customers. This potential

market growth was taken seriously by Indonesian airlines by providing added value to

customers of aviation services.

One response to the potential as well as added value is by developing e-business

in their business. In the aviation industry, e-business has a very important role. If we do

an approach with the value chain model expressed by Michael Porter, then the role of e-

business is able to help companies in the main activities and supporting the company.

The main activities are related to airline operations, inbound and outbound logistics,

marketing, company ticket sales, and services or services to consumers. In terms of

supporting activities, e-business supports infrastructure both physical and information,

human resources management, technology development and procurement activities. The

use of internet media in the era of globalization is increasing in the aviation industry. In

the aviation industry, the use of internet-based technology is the right and innovative way

for companies, especially Garuda Indonesia, to conduct company operations including

the company's marketing activities through the internet.

10) Financial Report: 2018

Consolidated Financial Statement as of June 30, 2018

Summary:
 Garuda Indonesia (officially PT Garuda Indonesia (Persero) Tbk IDX: GIAA) is the

national airline of Indonesia. Named after the holy bird Garuda of Hinduism from the national

emblem of Indonesia, the airline is headquartered at Soekarno–Hatta International Airport in

Tangerang, near Jakarta. As of 11 December 2014, the airline is rated as a 5-star airline by the

international airline review firm Skytrax] The air carrier was previously known as Garuda

Indonesian Airways.

Founded in 1947 as KLM Interinsulair Bedrijf, the airline is now one of the world's

leading airlines and the 20th member of the global airline alliance SkyTeam. It operates regularly

scheduled flights to a large number of destinations in Southeast Asia, East Asia, South Asia, the

Middle East, Australia and Europe from its main hub in Jakarta, Soekarno–Hatta International

Airport, as well as services to Australia and Asia from Ngurah Rai International Airport (Bali)

and a large number of domestic flights from both Sultan Hasanuddin International

Airport(Makassar) and Kualanamu International Airport (Medan).

At its peak in the late 1980s up to the mid-1990s, Garuda operated an extensive network

of flights all over the world, with regularly scheduled services to Los Angeles, Paris, Rome,

Fukuoka, Adelaide, Johannesburg, Cairo and other cities in Europe, Australia and Asia. In the

late 1990s and early 2000s, a series of financial and operational difficulties hit the airline hard,

which included the in-flight murder of a human rights activist, causing it to drastically cut back

services. In 2009, the airline undertook a five-year modernization plan known as the Quantum

Leap, which overhauled the airline's brand, livery, logo and uniforms, as well as newer, more

modern aircraft and facilities and a renewed focus on international markets, and earning the

airline awards such as Most Improved Airline, 5-Star Airline, and World's Best Cabin Crew.
The airline also operated a budget subsidiary Citilink, which provided low-cost flights to

multiple Indonesian destinations and was spun-off in 2012.

Origin of the name Garuda Indonesia:

On December 25, 1949, a representative from KLM who was also a friend of President

Soekarno, Dr. Konijnenburg, facing and reporting to the president in Yogyakarta that KLM

Interinsulair Bedrijf would be handed over to the government in accordance with the results of

the Round Table Conference (KMB) and asked him to name the company because the plane that

would take it from Yogyakarta to Jakarta would be painted according to that name .

Responding to this, President Soekarno answered the question by quoting a line from a Dutch

poem composed by a famous poet, Raden Mas Noto Soeroto in the colonial era which contained,

Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uits when the hoog boven for eilanden ("I is

Garuda, Vishnu's bird that spreads its wings high above your archipelago ").

So on December 28, 1949, historic flights using DC-3 aircraft with registration of KLM

Interinsulair PK-DPD flying took President Soekarno from Yogyakarta to Jakarta to attend his

inauguration ceremony as President of the Republic of Indonesia (RIS) under the name Garuda

Indonesian Airways, which was given by President Soekarno to the first airline company.

Garuda Indonesia CSR

Planting Trees

Garuda Indonesia always strives to reduce the impact on the environment produced by

the aviation industry. This is mainly done through the operation of aircraft that are

environmentally sound which aims to reduce emissions and waste and save energy and other

natural resources. Through environmentally sound operations and effective impact management,
Garuda Indonesia takes part in global community efforts to combat environmental issues such as

global warming, waste, energy and water. This is our commitment to ensure a better future.

Garuda Indonesia's commitment to minimize the impact of business activities on

environmental sustainability is realized in the form of a Green Strategy consisting of Green

Campaign (People), Green Action (Planet), and Green Responsibility (Profit). Programs carried

out are in line with the IATA Four Pillar Strategy (Improved Technology, Effective Operations,

Efficient Infrastructure, Positive Economic Measures), where the strategy formulated in 2007

aims to reduce the impact on the environment produced by the aviation industry.

The latest developments in Garuda Indonesia's strategy regarding environmental

management in 2016 are focused on efforts to minimize the impact of business activities on

environmental sustainability including supporting mitigation of climate change impacts and

demonstrating best practices for realizing sustainability.

GARUDA INDONESIA CARE

The Corporate Social Responsibility (CSR) program has become the right approach for

business entities to take root and grow together with the community. CSR is a binding tool

between the company and consumers or customers, as an effort to foster a sense of community

ownership of the company as well as a tool to harmonize business dynamics with environmental

sustainability.

Garuda Indonesia realizes that any progress made by the company should also be enjoyed

by the community, among others through various cooperation programs that can improve

community and environmental empowerment. Through CSR programs called Garuda Indonesia
Cares (Garuda Indonesia Peduli), efforts to empower the community and protect the environment

will continue to be part of the hard work to advance the company.

One of Garuda Indonesia's commitments is contained in the concept of Garuda Indonesia

Green Airline, aiming to make airlines aligned with the community and nature that is realized by

the involvement of Garuda Indonesia as one of the founding members in the Indonesia Business

Council for Sustainable Development (IBCSD). A forum for companies in Indonesia that focus

on the efforts of the business sector in creating sustainable Indonesia development. Garuda

Indonesia also actively participates in the Indonesia Vision 2050 Program which is an initiative

program with the aim of developing a business sector framework so that turning away from

Business As Usual practices becomes sustainable.

Through Garuda Indonesia Peduli, Garuda Indonesia has carried out a CSR program

designed to support community development and sustainable environmental development. The

programs that are run are also often synergized with the Government's efforts, and other

institutions both domestically and internationally which touch on 3 aspects of CSR, namely

Economic, Social and Environment in a consistent and sustainable manner.

GARUDA INDONESIA CARES FOR ECONOMY

Community economic progress is one indicator of the success of a CSR program.

Through the Loan and Partnership Development Program, Garuda Indonesia channels capital

loans to Small and Medium Enterprises (SMEs) spread throughout Indonesia. Capital assistance

is provided to SMEs fostered partners to support the potential to develop and manage their

businesses well. Fund distribution can be provided through synergies between state-owned

enterprises, non-governmental organizations and other channeling institutions.

5,151 Patronage Partners

Until the end of 2014, the Garuda Indonesia Partnership Loan Program had reached 5,151

fostered partners, consisting of 800 partners fostered by Garuda Indonesia and 4,351 fostered

partners, resulting from synergies with SOEs / other channeling agencies in 16 provinces

throughout Indonesia. The number and distribution of assisted partner SMEs will continue to

grow along with the growth of the informal business sector in the community.

Food security

Until the end of 2014, farmers and SMEs in the agricultural sector received the largest

portion, reaching 50.6% in partnership loan distribution. Followed by industry (26.1%), trade

(7.1%), plantations (8.7%), services (3%), fisheries (3.4%), and livestock (1.2%). This is in line

with Garuda Indonesia's commitment to contribute to the success of government programs,

especially national food security.

SME Product Promotion

Not only helping capital, SME empowerment efforts are also accompanied by education

and training programs to promotional activities in order to optimize the work and increase

market share of fostered partner products. In addition to participating in exhibitions at national

and international levels, Garuda Indonesia further promotes the products of fostered partners in

the Garuda On Arcade catalog since January 2013 edition. In the future, more and more products

of fostered partners will be promoted through this media. In fact, one of the products of a

fostered partner in the silver handicraft industry, Utami Silver, was chosen to be a supplier of

accessories in the form of brooches pinned on Garuda Indonesia cabin crew uniforms.
COMMUNITY DEVELOPMENT

Garuda Indonesia Community Development Program is a manifestation of the company's

concern and commitment to help improve conditions and foster the community through

assistance in the following sectors:

Education, Training and Sport

Airline Business profession program, Airport Passenger Service & Flight Operation

Officer

In collaboration with the Garuda Indonesia Training Center, Garuda Indonesia provides

training for high school / vocational high school graduates who come from disadvantaged

communities, especially in the areas of Jakarta, Tangerang, Bekasi and Eastern Indonesia.

Students who have completed this program will be ready to enter the workforce and some of the

program graduates work at Garuda Indonesia.

Becoming an Indonesian Program

Through collaboration with Tempo and General Electric (GE), Garuda Indonesia held

training on essay writing and competition methods for students. The aim of this program is to

instill nationalism in students through writing media.

The Flying Teacher Program with Garuda Indonesia and the Teacher Quality Improvement

Assistance Program

The Garuda Indonesia Flying Teachers Program aims to gain insight and provide

knowledge for teachers from Aceh, East Nusa Tenggara and Papua. One of them is the Training
Cooperation Program for Surabaya Region Teachers and Aceh with the material "Active

Learning: Student-Centered Active Learning Methods" to improve teacher competence,

especially in implementing effective learning to maximize the absorption of students.

School Renovation Program and Teaching and Learning Facilities Assistance

Garuda Indonesia also renovated elementary schools which were not suitable for use in

various parts of Indonesia, including in West Nusa Tenggara, Bali and Papua (Biak). Likewise

with the distribution of 574,120 recycled notebooks for elementary students in Manokwari, Biak,

Pacitan, Bali, Pontianak and Jakarta. Garuda Indonesia also provides educational aids, sports and

arts.

Garuda Indonesia's Commitment to Tennis Sports through "Garuda Indonesia Tennis Open"

As a form of the company's commitment to developing national sports and as part of its

Corporate Social Responsibility (CSR) program, Garuda Indonesia supports and participates in

the development of national sports.

Health

Concern for Children with Cancer

Garuda Indonesia also cares for children with cancer. In collaboration with the

Indonesian Child Cancer Foundation (YKAKI), Garuda Indonesia provides complete facilities at

the shelter house (Rumah Kita) in Jakarta. In addition, Garuda and YKAKI provide briefing on

early detection of childhood cancer in doctors and midwives of Puskesmas in Indonesia.

Garuda Indonesia Program Concerning Public Health

Garuda Indonesia also runs a free treatment program for people in various parts of

Indonesia, such as in Padang, Biak (Papua), Manokwari (West Papua) and Kapuk Muara

(Jakarta). The treatment services provided consist of specialist, general and dental services which

have served more than 3,850 residents. In particular, Garuda Indonesia has also provided Dental

Health counseling and counseling on HIV / AIDS Prevention in Biak, Papua

The program includes counseling on cervical cancer, HIV & AIDS to the people of

Tanjung Pinang (1,500 health centers) and Tarakan (220 health centers), Smear & IVA Pap

training for health workers, namely 40 general practitioners and 40 midwives and Pap smear &

IVA for the community, especially couples of childbearing age for 350 people as well as referral

assistance for 2 people and medical assistance for 2 people in each province for people with

positive cervical cancer detected and positive IVA therapy as many as 20 people. Garuda also

provided 2 pieces of Cryotherapy equipment which were placed in the YKI Tanjung Pinang,

Riau Islands and Tarakan branches, North Kalimantan.

Since 2013, in addition to Tanjung Pinang and Tarakan, Garuda and YKI have

implemented similar programs in Jayapura, Ambon, Manado and Jakarta. In 2017, Garuda and

YKI will implement this program in Kupang and Palembang.

Public Facilities and Facilities and Worship Facilities

To improve the quality of public facilities and infrastructure under conditions suitable for

use, Garuda Indonesia provides repair and development assistance. Garuda Indonesia has also

helped repair religious facilities in several regions in Indonesia such as NTB, Bali, West

Sumatra, Banten, West Java and DKI Jakarta.

Natural disasters

Garuda Indonesia shows its concern for the people who are victims of natural disasters

throughout Indonesia through the provision of assistance which is usually in the form of

clothing, food and health (medical).