State-owned airline Merpati Nusantara Airlines does not have the funds to resume operating this year, as the company has failed to restructure its Rp 10.72 trillion (US$745 million) in debt, an official has said.

The State-Owned Enterprises Ministry's deputy for restructuring and development, Aloysius Ro, said in Jakarta on Monday that the government was trying to find investors.

“In fact, [Merpati] still cannot fly. We are trying to find investors because the government won’t provide additional capital injection,” Aloysius said as reported by kompas.com after attending a hearing with the House of Representatives Commission VI on transportation affairs.

He said Merpati was in a difficult spot given the value of its assets, which was recorded at Rp 1.21 trillion in 2017, far lower than the value of its debt. The airline ceased operations in 2014.

Commission VI member Supratman said it would be difficult to bailout the airline. “With an assets value at Rp 1.2 trillion and total debt of more than Rp 10 trillion, it is hard to save Merpati,” he said.

According to the Business Competition Supervisory Commission (KPPU), the majority of Merpati’s debt came from the Finance Ministry and state-owned energy company Pertamina at Rp 2.6 trillion each.

Other debt comes from state-owned enterprises, such as national flag carrier Garuda Indonesia, Bank Mandiri and asset management firm Perusahaan Pengelola Aset. (bbn)