Home » Business » Erick Thohir Plans Merger of Garuda Indonesia, Pelita Air, and Citilink as Part of BUMN Efficiency Program

Erick Thohir Plans Merger of Garuda Indonesia, Pelita Air, and Citilink as Part of BUMN Efficiency Program

CNN Indonesia

Tuesday, 22 Aug 2023 10:34 WIB

BUMN Minister Erick Thohir plans to merge three BUMNs engaged in the aviation sector; Garuda Indonesia, Pelita Air and Citilink become one. (CNN Indonesia/Khaira Ummah Junaedi Putri).

Jakarta, CNNIndonesia

Minister BUMN Erick Thohir plans to merge three state-owned enterprises engaged in the sector flight become one

The SOEs are Garuda Indonesia, Citilink and Pelita Air. He said the merger was done for efficiency.

The merger is a continuation of the BUMN efficiency program which was previously carried out by the Ministry of BUMN for four Pelindos in 2021.

“After carrying out a series of efficiency programs at four Pelindos, (it) will be continued for SOEs in other clusters, namely airlines. Currently there are three SOEs engaged in the aviation sector, namely Garuda Indonesia, Citilink and Pelita Air,” said Erick in an official statement issued in Jakarta, Monday (21/8) yesterday.

Erick hopes that the merger can make the country’s aviation industry stronger and more efficient.

“BUMN continues to press logistic cost. Pelindo from 4 (companies) to 1. Previously, logistic cost reached 23 percent, now it’s 11 percent. We are also trying to merge Pelita Air, Citilink and Garuda to suppress it cost,” he said.

He said Indonesia currently still lacks around 200 aircraft.

The shortage of aircraft supplies was calculated from a comparison between the United States and Indonesia.

In the United States, said Erick, there are 7,200 aircraft serving domestic routes. Their population reaches 300 million people with an average GDP (income per capita) reaching US $ 40 thousand.

While in Indonesia there are 280 million people who have a GDP of US $ 4,700.

“That means Indonesia needs 729 aircraft. Now, Indonesia only has 550 aircraft. So our logistical matters are not yet in line,” said Erick.

(mrh/august)

2023-08-22 03:34:17
#Erick #Thohir #Merge #Garuda #Pelita #Air #Citilink

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