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Jakarta Post

SOEs ministry mulls establishing aviation holding company

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, April 9, 2019   /   08:16 am
SOEs ministry mulls establishing aviation holding company Terminal 3 of Soekarno-Hatta International Airport. (JP/Ben Latuihamallo)

State-Owned Enterprises Minister Rini Soemarno has said the ministry is considering integrating flag carrier Garuda Indonesia and two airport operators PT Angkasa Pura I (AP I) and PT Angkasa Pura II (AP II) into an aviation holding company.

“We are studying the possibility of establishing a holding company,” said Rini recently as quoted by tribunnews.com, adding that the holding company would be similar to state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum).

The government has already formed three holding companies, the other two being state-owned energy holding company Pertamina and state-owned plantation company PT Perkebunan Nusantara III (PTPN III).

Rini, however, did not go into detail on the plan, saying a study of the matter was still underway. Rini’s predecessor, Dahlan Iskan, had also raised the idea of establishing such a holding company.

Rini also did not say which company would lead the holding company. However, she said she believed the establishment of such a holding company would help improve efficiency in the government-run sector of the aviation industry.

The ministry’s business restructuring and development undersecretary Aloysius Kiik Ro said the plan was still in its initial phase, but added that he believed such a move would reduce operational costs significantly.

PT AP II vice president of corporate communication Yado Yarismano said the government had held a number of meetings to discuss the plan. A similar statement was made by AP I corporate secretary Handy Heryudhitiawan. “We are following the process,” Handy added. (bbn)