A Strategic Business Unit (SBU) is an independent business unit within the Company oriented towards resource-optimization aiming at maximizing the Company’s value by providing products and services to internal and third party customers, including Garuda Sentra Medika (GSM) Business Unit, Garuda Indonesia Training Centre (GITC) Business Unit, Garuda Cargo Business Unit and Citilink Business Unit (Low Cost Carrier). These four business units are accountable to the Board of Directors.

Garuda Sentra Medika SBU
Garuda Sentra Medika (GSM) SBU has a series of programs to attain its vision of becoming a leading center for health care services and a preferred provider for the airline as well as state-owned enterprises in Indonesia.

Below is a list of GSM’s programs:

1. Provide readily-accessible health services in major cities throughout Indonesia
2. Develop family health care services
3. Promote health care products via printed media and JHCC exhibitions
4. Improve clinic facilities and infrastructure
5. Limit/manage buffer stock
6. Produce TPB & PR using SIRS
7. Evaluate vendors

Cargo SBU
Cargo SBU serves customer needs for air-transport of goods. Cargo SBU sells cargo space in the Company’s aircrafts to air cargo service-providers and currently has no freighter aircrafts among its operational assets. The available cargo space in the Company’s varied aircrafts is measured by freight available ton kilometers (FATK).
To improve customer-service quality and provide optimal revenue contributions, Cargo SBU carries out the following work programs:

1. Cooperation with POSINDO, door to door cooperation with REPEX and cooperation with PAGAR in the Middle East
2. Organization of business processes to increase efficiency
3. Organizational restructuring at the Head Office and strengthening of functions in branch offices
4. ISO 9001-2000 Certification for Garuda Cargo SBU
5. Support of the corporate IOSA program
6. Implementation of EDI e-Freight
7. Development of a candidate selection process, assessment by strategic partner as well as implementation of change management
8. Belly Space Rate (BSR).

Garuda Indonesia Training Center SBU
The Garuda Indonesia Training Center (GITC) SBU is a Learning and Development Unit designed to develop the Company’s human resources (HR). By capitalizing on the available capacity, ground training and leasing of aircraft simulators to third parties contributed to revenues. Its work programs include:

1. Improving coordination with each directorate within the Company according to GITC’s function as a training institution.
2. Pre-, current and post-training service improvements
3. Improvement of training facilities and media with computer-based training (CBT) upgrades, class-standardization and improvement and renovation of dormitories.
4. Development of new products more appropriate to customer needs
5. Instructors’ quality improvement
6. Optimization of the SAP system to perform timely transactions in the system, for data accuracy in production reports.
7. Utilization of Associated Instructor
8. Efficiency of production costs, organization costs and marketing & promotion costs
9. Enhancement of productivity through new product development and market exploration
10. Development of e-learning as the “knowledge-sharing” media for internal parties within the Company to assist in HR-development and reducing training costs.

Citilink SBU
Citilink provides low cost fares targeting the steadily-increasing budget traveler segment in the domestic market. Destination restructuring was initiated in June 2007 by establishing Batam as the hub of the destination network. The move to restructure destinations was based on profitability, market segment, competitive climate and the Company’s presence through its main brand destinations.