Garuda Indonesia Explores Merger with Pelita Air as Part of BUMN Consolidation

Background of Potential Merger

PT Garuda Indonesia (Persero) Tbk (GIAA) has confirmed that it is in discussions regarding a potential merger with PT Pelita Air Service, a subsidiary of PT Pertamina (Persero). This development is part of the broader state-owned enterprise (BUMN) consolidation program initiated by the Indonesian government through Badan Pengelola Investasi (BPI) Daya Anagata Nusantara (Danantara).

Current Status of Merger Discussions

According to Thomas Sugiarto Oentoro, Deputy Director of Garuda Indonesia, the merger plans are still in the discussion phase with the company's Series A shareholder, Danantara, and Pertamina, the parent company of Pelita Air. "Yes, it is one of the things we are still discussing with our shareholders, Danantara, and also with Pertamina," Thomas explained during a virtual Public Expose event on November 27, 2025.

Strategic Implications

The potential merger between Garuda Indonesia and Pelita Air Service is seen as a strategic move to enhance operational efficiency and competitiveness in the aviation sector. As part of the BUMN consolidation program, this merger aims to streamline operations among state-owned enterprises and create synergies that could lead to improved financial performance and service quality.

Future Outlook

While the merger discussions are ongoing, the final decision will depend on various factors, including strategic alignment, financial health, and regulatory approvals. The outcome of these discussions is expected to have significant implications for both companies and the broader aviation industry in Indonesia.