State-owned airline PT Merpati Nusantara Airlines has escaped bankruptcy, following a decision by the Surabaya Commercial Court on Wednesday, but there is no guarantee that the airline will fly again.
State-owned asset management PT Perusahaan Pengelola Aset president director Henry Sihotang said a number of steps should be carried out by Merpati management.
“Merpati is a state-owned enterprise (SOE). If the management wants to carry out a corporate action, there are certain requirements that should be fulfilled,” Henry said on Wednesday as reported by kontan.co.id.
“Under the peaceful proposal for the debt postponement petition (PKPU), it was mentioned that there are investors. It is privatization if the investors control the majority of shares. There are other regulations that should be respected.”
Three regulations rule SOE privatization: Law No 19/2003 on SOEs, Government Regulation No. 33/2005 on the procedure for SOE privatization and an SOE ministerial regulation on privatization procedures, arrangement of privatization programs and assignment of supporting professions.
Under the regulations, Merpati management, among others, is required to seek approval from the finance minister to carry out privatization, while Minister Sri Mulyani Indrawati has not made a decision on the matter. “Anyone who wants to enter Merpati should not only take the name, but they also take expertise, technology and money,” the minister said.
Merpati has total debts of Rp 10.95 trillion (US$720.73 million): Rp 1.09 trillion owed to preferential creditors, Rp 5.99 trillion to concurrent creditors and Rp 3.87 trillion to separatist creditors. (bbn)
The Jakarta Post