Danantara: Formation of state-owned airline holding nearing completion
Jakarta — The Investment Management Body for Daya Anagata Nusantara (Danantara Indonesia) is targeting completion of the formation of a state-owned airline (BUMN) holding structure in the first semester of 2026.
The airline holding will comprise PT Garuda Indonesia (Persero) Tbk (GIAA), its subsidiary PT Citilink Indonesia, and PT Pelita Air Service, which is an airline business division of PT Pertamina (Persero).
Rohan Hafas, Managing Director of Stakeholders Management at Danantara Indonesia, explained during an exclusive group interview at Wisma Danantara in Jakarta on Thursday that the formation of the airline holding will create efficiencies and optimise the booking systems across the three companies.
“The holding integration of Pelita, Citilink, and Garuda means one booking, one Garuda point, mileage, registration, and even seats can be interchangeable and so forth. This will certainly be more efficient. It’s an optimisation of the booking system,” said Rohan.
Regarding fleet expansion, he continued that by consolidating the three airlines, the fleet limitations currently faced by each company can be resolved, especially where they operate overlapping routes.
“The total number of aircraft increases when combined. Routes that each currently serve at only 60 per cent capacity could be fully utilised when merged. If Surabaya is the most popular destination, for instance, and Citilink flies there, Pelita flies there, and Garuda flies there, why not operate a single flight?” said Rohan.
Alongside the consolidation of booking systems and operational cooperation between the three companies, the management hopes to generate additional revenue, particularly for Garuda Indonesia, which is currently working to achieve profitability.
“Hopefully by the first semester of 2026, because this is critical to generating extra income without adding aircraft,” said Rohan.
However, Rohan was unable to provide detailed explanations of the holding structure and operational arrangements that will be established among the three airlines.
“What the structure will look like, whether it’s a merger or something else, is what we need to decide soon. It requires careful calculation, not just a simple combination or alliance. Consolidation and accounting matters are not straightforward either,” said Rohan.
Previously, Danantara Chief Operating Officer Dony Oskaria stated that the consolidation process for the airline holding was targeted for completion in the first quarter of 2026.
Under this scheme, Garuda Indonesia has been designated as the parent holding company.
“Garuda Indonesia will be the parent holding. Underneath it will be Citilink and Pelita Air,” said Dony.