Airline Sriwijaya Air offering Initial Public Offerings (IPO) in Indonesia

Currently, Sriwijaya Air serves 46 domestic routes as well as seven international routes in the Asia Pacific with 51 narrow-body Boeing jets. With the larger fleet (after additional airplanes are purchased), the airline wants to add several domestic and regional routes as well as one to Jeddah (Saudi Arabia).

Chandra Lie did not inform how much the company expects to raise from the initial public offering on the Indonesia Stock Exchange (IDX). In February 2011 Indonesia’s national flagship carrier Garuda Indonesia conducted an IPO on the IDX in which it raised IDR 3.3 trillion (approx. USD $252 million) by selling a 28 percent stake.

Sriwijaya Air, founded by the brothers Chandra Lie and Hendry Lie in 2003, is Indonesia’s third-largest airline, controlling about ten percent of the domestic air passenger market. It currently carries about 800,000 passengers per month. The airline will move its administration and operational activities to the Cengkareng Business City complex from its current base at the Soekarno Hatta International Airport.

The aviation industry in the Asia-Pacific region remains among the world’s fastest growing regions in terms of air passengers. Recently, the Indonesia National Air Carriers Association (INACA) says, whereas worldwide the number of air passengers is growing at a pace of nearly 7 percent (y/y), Indonesia’s air passenger growth is estimated at around 15 percent (y/y) in 2016.

Number of Air Passengers in Indonesia 2011 – 2015:

^{Source: BPS}