Merpati hopeful about govt loan

Merpati hopeful about govt loan

MAKASSAR: State-owned airline Merpati Nusantara is still hopeful
that its request for Rp 200 billion in low-interest loans from
the government's investment fund account (RDI) would be approved
by the House of Representatives Commission IX on financial
affairs.

Merpati president Hotasi Nababan said over the weekend that if
the House rejected the request, Merpati would have to either
merge with national flag carrier Garuda Indonesia or launch a
divestment program to raise funds for its working capital.

The Ministry of Finance said earlier this week it could not
disburse the loan as requested by the ailing Merpati, as the
government and the House had yet to discuss the proposal.

The ministry added that the government would be extra careful
in channeling the RDI fund from now on, as many state-owned
enterprises had failed to repay their loans from the fund. -- JP