Government to privatize Merpati airline company

The Indonesian government will privatize PT Merpati Nusantara Airlines by inviting investors to resolve the disputes in the company, deputy state enterprises minister Aloysius K.Ro said here on Tuesday.

“By undertaking this privatization effort, one hopes Merpati is revived again and finds it possible to settle the fate of its employees,” he said at his office.

He said the investors being invited could come from within the country or abroad and it is hoped that they will be ready in the first quarter of 2016 to resolve the issue, adding, “The investors (who we are looking at) are new players who have never participated in the privatization process (earlier).”

“Investors who will come will be those ready to run it. They see the brand name Merpati. We are the majority share holder. It is alright. The important thing is to revive Merpati,” he said.

Initially, Merpati will receive Rp500 billion in capital from the Asset Management Company (PPA) for right sizing, including settling the normative rights of its employees, an issue pending for long now.

“We must negotiate. What is important is that the unpaid salaries are settled. As for the issue of severance pay, it will be discussed with the prospective investor,” he said.

In line with the plan, all Merpati employees will be laid off and Merpati will appear as a totally new company with new employees.

“All employees will be laid off and thus Merpati will be like a new born baby. They, however, will have the right to seek re-employment if the company is already in good health,” he said.(*)