Prabowo orders Garuda to form joint venture with Saudi Arabia
Jakarta (ANTARA) - President Prabowo Subianto, during a government working meeting with ministers up to echelon I and CEOs of state-owned enterprises, ordered Garuda Indonesia to explore cooperation in forming a joint venture with Saudi Arabia’s national airline, Saudia Airlines.
The President explained that the joint venture could help Indonesia reduce hajj costs while providing benefits to the national airlines of Indonesia and Saudi Arabia.
“So, so far, Garuda planes depart carrying hajj pilgrims to the holy land and return empty. This is not economical, it doesn’t make sense. Saudi Arabia is the same. They return our hajj pilgrims to Indonesia, and the return is empty. I said, why not cooperate? Create a subsidiary company, 50 percent Saudi Arabia, 50 percent Indonesia,” said President Prabowo during his briefing at the Government Working Meeting at the Presidential Palace in Jakarta on Wednesday.
If this concept is realised, Garuda planes transporting hajj pilgrims to the holy land could return carrying passengers. The same applies to Saudi planes; after transporting Indonesian hajj pilgrims home, those planes could return carrying passengers to Saudi Arabia.
“These planes flying (Garuda, ed.) to Saudi Arabia full, to Indonesia full. Prices can drop again. Times can be shorter again,” said the President.
President Prabowo then called Garuda Indonesia’s President Director Glenny Kairupan, who was present at the Government Working Meeting.
When called by the President, Glenny responded loudly: “Ready!”
The President then reminded Glenny that the instruction had been given two months ago. Therefore, the President asked Glenny to report on the follow-up of that instruction.
“Has it been worked on? I ordered it about two months ago. Yes, this must be done quickly, then Garuda’s President Director will report to me,” said the President to Glenny.
On the same occasion, President Prabowo also emphasised that the government remains committed to reducing hajj costs by Rp2 million, despite rising avtur prices.
The Indonesian government and the Indonesian House of Representatives for 2025 have set the Hajj Worship Management Cost (BPIH) for 2026 to remain reduced by Rp2 million, so the BPIH amount this year reaches Rp87,409,366 per pilgrim.
The policy of reducing hajj costs is maintained by the government because President Prabowo emphasised that there should be no increase in hajj cost components borne by pilgrims.
“We ensure that the hajj cost for 2026 is reduced by around Rp2 million, even though avtur prices are rising, but we dare to lower the hajj cost for this year,” said President Prabowo.