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NEW UPDATES Asean Affairs 10 September 2015  

Indonesia AirAsia to convert debt into preference shares

Indonesia AirAsia shareholders have agreed to convert the low-cost carrier's debt into preference shares to improve the company's financial situation, and bring it out of negative equity.

According to Indonesia AirAsia president director Sunu Widyatmoko, the company has no financial issues. Its operational capital is in good standing.

"Currently our operational activities are normal. The negative equity position has not affected our activities, safety standards, or maintenance," said Sunu last week as quoted by

On Monday, Sunu said that the company was still waiting for approval from the Investment Coordinating Board (BKPM).

"Shareholders have agreed [to convert the debt], but it has not yet been executed. We are still waiting for approval from BKPM. So, [to cover] the company's accumulated losses, [we received] loans from [our] shareholders," said Sunu on Monday.

According to Indonesia AirAsia's financial report for the first half of 2015, there was a net loss of Rp 486.35 billion (US$34 million), an increase from last year, which was Rp 340.33 billion.

The financial condition has automatically eroded the carrier's equity. By the end of June, its equity was negative by Rp 4.19 trillion, an increase from last year, which was negative Rp 3.18 trillion.

Meanwhile, the airline received loans for Rp 4.2 trillion. Sunu refused to confirm whether that was the number that would be converted into preference shares.

Previously, Transportation Minister Ignasius Jonan named several airlines that had negative equity.

Besides Indonesia AirAsia, other names mentioned by Ignasius included Cardig Air, Transwisata Prima Aviation, Eastindo Services, Survai Udara Penas, Air Pasifik Utama, Johnlin Air Transport, Asialink Cargo Airlines, Ersa Eastern Aviation, Tri-MG Intra Airlines, Nusantara Buana Air, Manunggal Air Service and Batik Air.

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This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






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