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Jakarta Post

Govt to find solutions for Merpati

State-Owned Enterprises Minister Rini Soemarno said her ministry plans to find a solution for the debt-ridden carrier PT Merpati Nusantara Airlines (Merpati) in the next three weeks

The Jakarta Post
Jakarta
Tue, December 2, 2014 Published on Dec. 2, 2014 Published on 2014-12-02T16:00:10+07:00

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tate-Owned Enterprises Minister Rini Soemarno said her ministry plans to find a solution for the debt-ridden carrier PT Merpati Nusantara Airlines (Merpati) in the next three weeks.

'[Finding solutions for] Merpati is hard. But from the very first day that I started leading this ministry, I've been thinking about the airline. We plan to hold a meeting with [Finance Minister] Bambang Bojonegoro and [Transportation Minister] Ignasius Jonan and people from the Economic Coordinating Ministry to find solutions,' Rini said in Jakarta on Tuesday as quoted by tribunnews.com.

She admitted that it was hard for the airline to compete with other airlines operating in the archipelago given the fact that the competition was tight and Merpati has temporarily halted its operations since February of this year.

In addition, the carrier was unable to find ways to pay its mounting debts which reached a total of Rp 6.7 trillion (US$ 549.4 million), particularly to state owned oil and gas firm PT Pertamina.

'We are going to analyze this issue and we are aiming to find solutions in the next two to three weeks,' she said.

The government decided to temporarily stop the operations of Merpati in February after the troubled carrier failed to resolve its financial difficulties.

Transportation Ministry froze the Air Operator Certificate (AOC) of the carrier on Feb. 10, 2014.

The airline is also unable to meet its payments on insurance premiums and employee salaries.

Merpati, which employed 1,680 workers, also terminated the contracts of its 300 outsourced workers in February. (nfo)(+++)

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