The sovereign wealth agency, BPI Danantara, is studying the potential merger between state-owned carriers Pelita Air and Garuda Indonesia in an effort to boost efficiency and optimize resources.
Danantara CEO Rosan P. Roeslani said on Tuesday, September 16, 2025, that the consolidation plan was still in its early stages.
“We hope the consolidation will increase productivity and optimize the airlines’ assets, both in terms of flight hours and aircraft parts,” Rosan told reporters at the Presidential Palace in Jakarta.
Pelita Air, a subsidiary of state-owned energy giant PT Pertamina, has been positioned as a growing domestic carrier, while Garuda Indonesia continues to restructure after years of financial hurdles. Both companies are currently under Danantara’s supervision.
Pertamina president director Simon Aloysius Mantiri said the potential merger reflects the company’s strategy to refocus on its core businesses in oil, gas, and new renewable energy.
“We are conducting preliminary discussions on the integration with Garuda Indonesia. This is part of our plan to cluster businesses with similar operations, while allowing Pertamina to concentrate on its main energy business,” Simon said during a hearing with State-owned Enteprises (SOEs) Commission VI of the House of Representatives (DPR) on September 12, 2025.
He added that the move would help strengthen corporate reputation and improve stakeholder confidence. Pertamina currently holds 99 percent of its series B shares under Danantara’s ownership structure, giving the sovereign wealth manager authority to oversee the restructuring.
If realized, the merger could reshape Indonesia’s aviation landscape by consolidating resources under a single state-owned airline group, while also aligning with Danantara’s mandate to enhance the performance of state assets.
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