State-Owned Enterprise Efficiency: Pelita Air - Garuda Indonesia Bidik Savings Budget Up to Rp80 Trillion
JAKARTA - The State-Owned Enterprises Management Agency (BP BUMN) together with Danantara continues to encourage the consolidation of state-owned airlines. One of the strategic steps taken is to merge Pelita Air into Garuda Indonesia to strengthen the national aviation industry.
The head of BP BUMN and Danantara COO, Dony Oskaria, confirmed that the corporate structure of state-owned airlines would be centralized in one main entity.
"Garuda Indonesia will later become our airline holding company. Pelita will become part of Garuda Indonesia," said Dony Oskaria in an official statement confirmed in Jakarta, Friday.
Strengthen Competitiveness and Optimize Flight Routes
Dony believes that this consolidation step will increase the group's capacity in the face of fierce competition in the aviation industry, both nationally and regionally.
According to him, the aviation business requires high accuracy and quick and precise operational decision-making.
Real-Time Operational Oversight: Aviation business is considered to be managed day-by-day to minute-by-minute. Route Analysis: Profitability can be measured immediately after the aircraft takes off, so route and connectivity analysis are fundamental. Market Dominance: This integration is expected to provide a more solid financial and operational capability for the Garuda Group.Improvement of Garuda Group Service Standards in a Comprehensive Way
In addition to restructuring the corporation, BP BUMN and Danantara are also focusing on improving the quality of services for passengers (passenger experience). The integration will include three main stages:
Pre-flight: Integration of the ticketing system and improvement of lounge facilities. In-flight: Better catering quality, cabin crew service standards, and cabin space comfort. Post-flight: Strengthening customer loyalty programs and Human Resources (HR) development.With the improvement of services from upstream to downstream, the Garuda Group is targeted to become the public's first choice as well as a key player in the regional market.
Part of the Target of Efficiency of 250 SOEs Era President Prabowo
The merger of Pelita Air and Garuda Indonesia is in line with President Prabowo Subianto's direction regarding SOEs' efficiency.
During the plenary Cabinet Meeting at the State Palace, Jakarta, Monday (20/7), the President conveyed that the closure, merger, and consolidation of 250 SOEs until July 31, 2026 had the potential to save the state budget up to Rp50 trillion.
Important Points of SOE Efficiency:
Overhead Cost Savings: Reducing routine costs such as directors' salaries, commissioners, building rental, and office operations. State-Owned Enterprises Target: The number of SOEs will be reduced from 1,077 entities to a maximum of 350 SOEs by the end of 2026. Total Savings Potential: If the reduction target is achieved, state funds are expected to penetrate Rp. 70 trillion to Rp. 80 trillion.The President emphasized his optimism about its performance and assessed the formation of Danantara and the arrangement of SOEs as one of the important achievements in his administration.