Indonesian Political, Business & Finance News

Prabowo Orders Garuda Indonesia CEO to Form Joint Venture with Saudi Arabian Airlines

| Source: CNBC Translated from Indonesian | Business
Prabowo Orders Garuda Indonesia CEO to Form Joint Venture with Saudi Arabian Airlines
Image: CNBC

Jakarta, CNBC Indonesia - President Prabowo Subianto has requested Garuda Indonesia to form a joint venture with Saudi Arabian Airlines to resolve the issue of Garuda’s aircraft returning empty to Indonesia after transporting Hajj pilgrims.

“Is the Garuda CEO and Danantara here? I have instructed them to approach Saudi Air so that Garuda and Saudi Air create a JV. For a long time, Garuda’s planes have been transporting Hajj pilgrims to the Holy Land and returning empty. This is not economical; it doesn’t make sense.

Saudi Arabia also returns our pilgrims to Indonesia on empty flights. I said, why not collaborate and create a 50:50 subsidiary. Our flights to Saudi Arabia would be full, and back to Indonesia full; prices could drop again, and travel time could be shorter. This needs to be implemented,” he stated during a Government Working Meeting on Wednesday (8/4/2026).

Additionally, Prabowo mentioned that Indonesia will build a Hajj village with dozens of towers to accommodate many Indonesian pilgrims. He has already proposed it, and in principle, it has been approved by the Saudi kingdom for Indonesia to have a special Hajj terminal.

“Has it been worked on yet? I ordered it about two months ago; this government must work quickly. The Garuda CEO will report to me later,” he emphasised.

The President has also taken bold action by reducing Hajj costs, despite a significant increase in aviation fuel (avtur) prices.

“Even though avtur prices have risen, we dare to lower Hajj costs for this year; this is the government’s commitment to protect the lowest-income people,” he said.

Furthermore, he is striving to reduce Hajj waiting times, which from this year will no longer be 48 years but at most 26 years. He even claimed he will fight to make it even shorter.

View JSON | Print