Merger aims to build a stronger national airline and improve connectivity across Indonesia
Indonesia is advancing plans to merge PT Pertamina’s subsidiary Pelita Air into national flag carrier PT Garuda Indonesia, a move aimed at strengthening Indonesia’s aviation sector, improving connectivity across the archipelago, and creating a more competitive national airline.
The proposal, led by Indonesia’s sovereign wealth fund Danantara Indonesia and the State-Owned Enterprise Management Agency (BP BUMN), will establish Garuda Indonesia as the country’s airline holding company, with Pelita Air becoming part of the Garuda Indonesia Group.
BP BUMN Head and Danantara Indonesia Chief Operating Officer Dony Oskaria said the consolidation is intended to strengthen Indonesia’s national airline by enabling faster decision-making in the aviation industry, where profitability and operational precision require constant monitoring. He also called for improvements across the passenger journey, including integrated ticketing systems, airport lounges, in-flight services and catering, loyalty programmes, and human resource development.
Indonesia’s Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), welcomed the proposal, saying a stronger Garuda Indonesia Group would enhance connectivity across Indonesia’s vast archipelago while supporting the growth of the country’s aerospace and aviation industry. He added that expanding aviation capacity could help lower air transportation costs and strengthen the broader aerospace ecosystem.
The merger forms part of President Prabowo Subianto’s wider state-owned enterprise reform programme, which aims to streamline government-owned companies through mergers and consolidation to improve efficiency and competitiveness.
As the integration progresses, the government expects the Garuda Indonesia Group to strengthen its regional competitiveness, enhance passenger services, and become the preferred airline for Indonesian travellers.
Source: ANTARA News
