Erick Thohir Will Merger Garuda, Citilink And Pelita Air

Illustration of Garuda Indonesia (Photo: Doc. Garuda)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir plans to merge or merge three state-owned airlines, namely PT Garuda Indonesia (Persero) Tbk (GIAA), Citilink Indonesia and Pelita Air.

For your information, this meger action has also been carried out previously in the port and logistics sector by combining four Pelindo companies.

"After carrying out a series of efficiency programs on four Pelindo, we will continue to state-owned enterprises in other clusters, namely airlines. Currently, there are three SOEs engaged in the aviation sector, namely Garuda Indonesia, Citilink, and Pelita Air," he said in an official statement, Tuesday, August 22.

Furthermore, Erick explained that this plan is one of the efforts so that logistics costs in Indonesia continue to decline. So that it will further ease the business world.

Erick also encouraged efficiency to continue to be the main agenda for state-owned companies.

Currently, said Erick, Indonesia still lacks around 200 aircraft. The calculation was obtained from a comparison between the United States and Indonesia.

In the United States, continued Erick, there are 7,200 aircraft serving domestic routes. Where there are 300 million populations with an average GDP (per capita income) of up to 40,000 US dollars.

"Now Indonesia only has 550 aircraft. So our logistics case is not yet appropriate," he said.

To reduce the number of aircraft left behind, Erick said it was possible to merge the three state-owned airlines.

Erick said that the Ministry of SOEs under his leadership continues to suppress logistics costs or logistics costs. One way is by merging or merging companies.

With this merger, continued Erick, it will have an impact on reducing logistics costs in the country. For example, the Pelindo merger from four companies is one. The logistics costs reached 23 percent, now it is 11 percent.

"We are also trying Pelita Air, Citilink, and Garuda to merge to reduce costs," he said.