Jakarta (ANTARA) -  Danantara Indonesia and the State-Owned Enterprise Management Agency (BP BUMN) are seeking to merge Pelita Air, a subsidiary of state energy company Pertamina, into national flag carrier Garuda Indonesia.

"As we develop Garuda Indonesia into our holding airline, Pelita Air will become part of Garuda Indonesia," BP BUMN Head and Danantara Chief Operating Officer (COO) Dony Oskaria said in a written statement on Friday.

Oskaria said the consolidation is necessary to strengthen the national airline, as the aviation industry requires careful planning and rapid decision-making in its operations.

"A sector that requires high precision and must be managed day by day and minute by minute is aviation. As aircraft operate, we must be able to determine the profitability of each flight," he said.

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As the government moves to consolidate Pelita Air into Garuda Indonesia, Danantara Indonesia and BP BUMN have urged the flag carrier to comprehensively improve its services across pre-flight, in-flight, and post-flight stages.

The improvements should cover integrated ticketing systems, lounge quality, in-flight experiences and catering, flight crew services, airline loyalty programs, and human resource development.

The merger will strengthen the national flag carrier's ability to address industry challenges and compete more effectively in the aviation market, Oskaria said.

He added that, alongside continued service improvements, the integration is expected to enhance the Garuda Indonesia Group's competitiveness at the regional level and position it as the preferred airline for Indonesian travelers.

The airline consolidation is part of President Prabowo Subianto's broader initiative to streamline state-owned enterprises, with the goal of reducing their number from the current 1,077 entities to no more than 350 by the end of 2026.

During a plenary Cabinet meeting on Monday (July 20), Prabowo said the government had saved up to Rp50 trillion in state spending through the closure, merger, and consolidation of 250 state-owned enterprises as of this month.

He added that reducing the total number of state-owned enterprises to the targeted level could generate total savings of Rp70 trillion to Rp80 trillion.

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This news was published on Antaranews.com with a title: Indonesia plans Garuda-Pelita merger to strengthen national airline

Pewarta: Putu Indah Savitri, Nabil Ihsan
Editor : Mahdani

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