TEMPO.CO, Jakarta - The Supreme Audit Agency (BPK) had recommended the government to keep Merpati Nusantara Airlines. Therefore, State-Owned Enterprises Minister Dahlan Iskan said the government will hold a meeting to discuss the airline's fate; looking for the right solution.

"We will discuss [Merpati] in a board meeting on Thursday," he said yesterday.

BPK's second half of 2013's audit found ineffectiveness and inefficiency in Merpati's management. The state auditor stated that mismanagement occurred because of the lack of a good business plan, poor operational management, as well as improper use of procurement and fleet maintenance.

From 2009 to 30 September 2013, BPK found that Merpati's revenues are always smaller than the cost incurred, putting the state-owned company in a continuous state of loss. In 2010, Merpati posted a loss of Rp103.3 billion. A year later, the loss increased to Rp833.7 billion. In 2012 and 2013, the company also posted losses of Rp1.5 trillion and Rp658.6 billion, respectively.

The constant losses pushed up Merpati's debt to various creditors and entities. As of October 31, 2013, Merpati's debts exceeded Rp7.29 trillion.

BPK also found negligence in planning the number of aircraft ready to operate. Other issues are the dire need for spare parts and the fact that most of Merpati's fleet have unreliable engines. The latter problems caused expenditures for flight delays and cancellations to swell, reaching Rp22.84 billion.

ANANDA PUTRI | ANGGA SUKMA WIJAYA