Garuda Indonesia Reveals Progress on Merger with Pelita Air
PT Garuda Indonesia (Persero) Tbk is currently maturing plans for a merger involving Pelita Air and the Garuda Indonesia Group. This corporate action is presently in the stage of intensive study and discussion with shareholders and several relevant parties.
“The study covers the strategic direction, form, structure, stages, timeframe, and implementation mechanism, considering the strengthening of the Garuda Indonesia Group’s business ecosystem within the company’s transformation agenda,” explained Andreas Tumpal H. Hutapea, Corporate Secretary Group Head of Garuda Indonesia, in a response letter sent to the Indonesia Stock Exchange on Friday, 31 July 2026.
Garuda management stated that no decision has yet been made regarding when the consolidation will become effective. The effective date is pending the results of the study and will be determined in accordance with the authority and approval mechanisms.
Currently, Pelita Air’s ownership structure still refers to the official data of the entity concerned. “The ownership structure applicable after the implementation of the corporate action, including any changes to the structure of the company’s subsidiaries, will refer to the form and structure of the transaction established through the approval mechanism in accordance with applicable regulations.”
The company is also analysing the impact of the corporate action on operational activities and financial performance based on the established form, structure, and implementation mechanism. Garuda ensures that any changes will be reported to the public.
Management is also still refining the operational synergy scheme between Garuda, Citilink, and Pelita Air. The determination of policy direction and the final decision on the corporate action will be carried out through the decision-making mechanism according to the authority of the shareholders, namely PT Danantara Asset Management, and related parties.
Previously, Danantara, alongside the BP BUMN, encouraged the consolidation of state-owned airlines by merging Pelita Air and Garuda Indonesia. “Garuda Indonesia will eventually become our airline holding. Pelita will become part of Garuda Indonesia,” said the Head of BP BUMN and COO of Danantara, Dony Oskaria, on Friday, 24 July 2026, as quoted from Antara.
According to Dony, this consolidation aims to strengthen the group’s capacity to face competition in the aviation industry. “With this consolidation, these companies will have a stronger ability to compete and dominate the market,” he added.