Analysis: Garuda–Pelita merger plan advances amid financial, political headwinds - Academia

The plan to merge national flag carrier PT Garuda Indonesia with PT Pelita Air Service, a subsidiary of energy holding state-owned enterprise (SOE) PT Pertamina, has reached a new stage. State asset fund Danantara has brought Garuda and Pertamina together to assess share structures and other corporate aspects. The move aligns with broader efforts to streamline SOEs. However, critics argue that the merger primarily serves as an effort to rescue the financially distressed Garuda.