JAKARTA. Garuda Indonesia president director Emirsyah Satar has resigned from his top post at the national flag carrier three months before he is due to end his term in March next year.

Emirsyah said his resignation would give his successor ample time to prepare for next year.

“There are a lot of things that need to be prepared by the incoming president director next year, including the ASEAN Open Sky Policy. Therefore, I decided to resign from my post now, to give more time to the new president director,” Emirsyah told The Jakarta Post on Thursday.

“I want to take a break for a while but I will continue my position as commissioner at Bank Muamalat,” he said.

According to Garuda’s written statement posted on the Indonesia Stock Exchange (IDX) on Thursday, Emirsyah submitted his resignation letter to the shareholders on Dec. 8.

Emirsyah, who was appointed president director of Garuda in 2005, came to the end of his second term in September this year.

His term was extended until March 2015 to finalize the appointment of his successor.

Emirsyah was reluctant to reveal the name of his successor, saying the new president director would be announced during a shareholders meeting on Friday.

Among the candidates to replace Emirsyah are Arif Wibowo, the president director of Citilink (the low-cost unit of Garuda Indonesia), former Bank Mandiri president director Zulkifli Zaini and former Garuda marketing and sales director Elisa Lumbantoruan.

MNC Securities research head Edwin Sebayang said Garuda should have a new leader with a capability to restructure the company.

“Garuda Indonesia has seen positive growth during the tenure of Emirsyah Satar. The financial losses recorded were merely due to the expansion, which was much needed by the company,” Edwin said.

“It’s better that the new board of directors consist of both people from inside the company and those with investment banking backgrounds to better manage the firm’s debt,” he continued.

During Emirsyah’s term, Garuda was recognized as the World’s Best Regional Airline and the World’s Best Economy Class in 2012 and 2013, respectively, by the global airline review and ranking consultancy Skytrax. In July, the airline also received a World’s Best Cabin Staff award.

However, as Emirsyah leaves Garuda, the company has some large debts.

The publicly listed airline has suffered losses over the past year with its comprehensive losses amounting to US$206.4 million in the first nine months of the year, skyrocketing from $32.54 million recorded in the same period last year.

Emirsyah said he believed the firm would perform better next year, following the decline in global fuel prices.

“In every cent of a decrease in the avtur [aviation turbine fuel] price, Garuda can spare up to $17 million dollars in operational costs. The price of avtur now has decreased 10 cents, which means the carrier can save up to $170 million in operational costs next year,” he said.

Shares in Garuda, traded under the code GIAA on the IDX, closed in Thursday’s trading session at Rp 620 apiece. (Nadya Natahadibrata and Khoirul Amin)

Editor: Barratut Taqiyyah Rafie