Indonesia plans to merge Garuda Indonesia with tourism companies

The Indonesian government has outlined plans to merge nine state-owned tourism companies, including Garuda Indonesia, in a move to maximise operational efficiencies. The country’s state-owned enterprises ministry states that the nine entities will be merged under a single holding company. Apart from Garuda Indonesia, other state-owned enterprises that will be folded into the holding company include airport operators Angkasa Pura I and Angkasa Pura II; hotelier Inna Hotels and Resorts; as well as department store Sarinah. The new holding company hopes to spur the various enterprises to implement cross-sector initiatives, thus increasing competitiveness and strengthening further funding capacity. In the longer term, the ministry hopes this would improve tourism performance. Each enterprise has also been asked to create taskforces to work out how best to collaborate and cooperate with one another. Details on the exact timeline of the new company are scant, with some indications that the legal framework could be ironed out by early next year.<br/>