SOE restructuring: Collaborating with INA, GIAA seeks strategic partner
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Restrukturisasi BUMN: Gandeng INA, GIAA cari mitra strategis
26 May 2023
By: Nuhansa Mikrefin
Jakarta - State-owned Enterprises (SOE) Minister Erick Thohir mentioned that PT Garuda Indonesia (Persero) Tbk (GIAA) was looking for strategic partners after restructuring. One of the ways is by collaborating with Indonesia Investment Authority (INA).
Erick said that there was an opportunity to establish a strategic partnership with INA. The Indonesian sovereign wealth fund (SWF) can also invite strategic partners for Garuda Indonesia.
“[They] have been looking [for partners]. However, with the current issue in the United States of America where companies fall into default, the market is nervous,” Erick said at the SOE Ministry building on Thursday (25/5).
Furthermore, he said that Garuda Indonesia was planning to cooperate with airlines that could provide access overseas. Some of the destinations include Qatar and United Arab Emirates (UAE).
Besides that, Garuda is also planning to be more focused on domestic flights. However, Erick has yet to mention how many strategic partners they are targeting.
He also mentioned that GIAA will not join the aviation and tourism SOE holding, PT Aviasi pariwisata Indonesia (Persero) or InJourney, soon. Garuda Indonesia has just completed their restructuring.
In other developments, the positive sentiment from Hajj flights is a positive catalyst for GIAA’s shares.
The shares of the state-owned airline have been in the green for 4 days in a row. GIAA’s shares increased by 33.33% from 22-25 May 2023 to Rp68 per share.
This year, Garuda Indonesia President Director Irfan Setiaputra said that GIAA would serve 104,172 pilgrims who would depart from nine Hajj embarkment points.
“We ensure to provide a seamless Hajj flight experience through the commitment to optimising punctuality,” he said.
In the first quarter of 2023, Garuda Indonesia’s revenue surged by 72.2% year-on-year from US$350.15 million in the first quarter of 2022 to US$602.99 million.
