Merpati Air Disbands, SOE Ministry Hands Over The Fate Of Ex-Employee Severance Pay Of IDR 318 Billion To Management

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir will soon dissolve PT Merpati Nusantara Airlines (Persero) or Merpati Airlines. Currently, the company is in the process of delaying the debt payment obligation (PKPU).

"It is certain that Pigeons will not fly again. We will bring them back to PKPU if for Merpati (dissolution) it will also go there to PKPU", said Staff of BUMN Minister, Arya Sinulingga, to reporters as quoted on Wednesday, May 18.

The disbandment of Merpati Airlines is in line with the plan to disband three other SOEs, namely PT Istaka Karya (Persero), PT Kertas Leces (Persero), and PT Financing Armada Niaga Nasional (Persero) or PANN.

Then, what about the severance pay for the former pilots and employees of Merpati Airlines?

Arya said the severance payment process for former pilots and employees of Merpati Airlines will follow the initial agreement between the company and employees.

"In the past, there was an agreement. They were paid when an investor came in. So regarding employees, we only followed what was decided together", he said.

Therefore, Arya hopes that the dissolution of the BUMN will be completed this year. That way, continued Arya, the ministry can focus on nourishing state-owned companies that still exist.

As is known, Merpati Airlines itself has stopped operating since 2014. In the closed condition, Merpati Airlines has problems paying the remaining severance pay for former pilots and employees, which totals IDR 318 billion for 1,233 people.

The Ministry of SOEs took steps to restructure Merpati Airlines through PT Perusahaan Penglola Aset (PPA) with a state capital participation (PMN) scheme of IDR 500 billion.

Last year, several former Merpati Air pilots who were members of the Ex Merpati Pilots Association (PPEM) sent an open letter to President Joko Widodo (Jokowi) to demand their severance rights which had not been fully paid by the state-owned company. The letter was sent on June 17, 2021, and has received a receipt.

However, until now there is no clarity regarding the payment of the remaining severance pay of IDR 318 billion for 1,233 former employees of Merpati Airlines.