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Garuda Indonesia shares plunge after domestic flights ban announcement

Move aimed at fighting coronavirus by curbing travel for Ramadan

Garuda Indonesia is working to bolster its operations, but the government's control over the company limits its options.   © Reuters

JAKARTA -- Shares in Indonesia's flagship carrier Garuda Indonesia plunged on Friday, following the country's decision to suspend all domestic passenger flights from Saturday.

The decision by the government, meant to curb people's movements during the holy month of Ramadan, will undoubtedly hurt the carrier's finances. The government has so far been slow to support the airline industry, leaving Garuda in a precarious position as it faces a mountain of debt this year.

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