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View all search resultsPertamina exploring Pelita Air-Garuda Indonesia merger
The proposed plan to merge Pertamina's Pelita Air and national carrier Garuda Indonesia is part of a broader strategy to restructure SOEs and improve their competititveness toward eventual consolidation under Danantara, while strengthening the aviation industry.
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Ground crew inspect an Airbus A320 aircraft operated by Pelita Air on April 11, 2022, on an apron at Soekarno-Hatta International Airport in Tangerang, Banten. (Courtesy of Pertamina)
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tate-owned energy holding company Pertamina is considering a merger between its low-cost carrier Pelita Air and flag carrier Garuda Indonesia, according to Pertamina president director Simon Aloysius Mantiri, who presented the idea on Thursday during a meeting with House of Representatives Commission VI, which oversees trade, industry and state-owned enterprises (SOEs).
Simon told Commission VI lawmakers that the spin-off would be managed under state asset fund Danantara.
The move advances a plan to merge the two carriers floated by State-Owned Enterprises (SOEs) Minister Erick Thohir in 2023 as a strategy aimed at improving services and reducing costs. At the time, the minister pointed to the merger of port operators Pelindo I, II, III and IV that successfully halved overall expenses as the model for the consolidation.
In January, Erick said the consolidation of state-owned airlines was expected to be completed “in the next six months”, underlining the ministry’s focus on the technical aspects of restructuring and its overall impact on the national aviation industry.
Simon explained during Thursday’s meeting that state-owned companies with overlapping business lines were slated for consolidation, pointing to the ongoing preliminary exploration of a Pelita Air-Garuda merger as a prime example.
“Likewise, our interests in the insurance, health care and hospitality sectors under Patra Jasa will follow the road map prepared by Danantara,” he told lawmakers.
The primary driver behind this divestment is a strategic pivot for Pertamina to focus on its core competencies in the oil and gas and renewable energy sectors.
