Failure Analysis of State-Owned Enterprises in the New Public Management Perspective: A Case Study of PT. Garuda Indonesia Tbk

Abstract

This article aims to describe the failure of financial performance from the perspective of New Public Management (NPM) which caused the bankruptcy of the company PT. Garuda Indonesia Tbk. The problem in this research is focused on the financial performance of PT. Garuda Indonesia Tbk failed due to its weakness in increasing effectiveness and efficiency as well as controlling output and outcome in using the resources owned by the company. In order to approach this problem, New Public Management (NPM) theory as a reference is based on seven NPM concepts. The data in this study were collected through literature review from various sources, such as journals, news, and official company documents. This research was conducted using qualitative research methods with a descriptive approach. This study concludes that the bankruptcy of PT. Garuda Indonesia Tbk is caused by several factors, namely control of output and outcome, less than optimal allocation of organizational resources, actions that focus on inputs without paying attention to outputs, and the lack of adaptation and anticipatory actions in the organizational environment.