The plan to spin off Pelita Air from PT Pertamina (Persero) and merge it with Garuda Indonesia is seen as a strategic move to consolidate state-owned enterprises in the aviation sector. This step is expected to support operational improvements and increase service capacity.

Expert: Fleet Growth Enables Cost Efficiency

State-owned enterprise (SOE) observer from the University of Indonesia, Toto Pranoto, stated that Garuda Indonesia Group currently needs additional aircraft to improve its service. He explained that the addition of aircraft would help achieve operational scale and open opportunities for efficiency.

“With more fleets, the operating scale of the airline can be achieved. That means efficiency opportunities will become more open,” said Toto when contacted by IDXChannel on Sunday, September 14, 2025.

He pointed out that efficiency could be achieved through shared costs in aircraft maintenance activities, which would help reduce the cost per unit of service.

Revenue Boost Likely as Market Demand Rises

Toto also said that a larger fleet would allow Garuda Indonesia Group to increase revenue in line with the growing domestic market demand.

“With increased capacity, the revenue potential of Garuda Group will also increase,” he said.

Pertamina to Refocus on Core Business

PT Pertamina (Persero) President Director, Simon Aloysius Mantiri, previously said that the planned spin-off of Pelita Air is part of the aviation SOE consolidation strategy. It also supports Pertamina’s efforts to concentrate on its core business areas in oil, gas, and renewable energy.

“All these steps are taken to maintain the company’s reputation and strengthen stakeholder trust, implement strong policy advocacy, and ensure effective communication,” Simon stated during a recent hearing with the House of Representatives (DPR).

PHOTO: PELITA AIR

This article was created with AI assistance