We Can Still Save Merpati: Hatta

TEMPO.CO, Jakarta - Coordinating Minister for the Economy Hatta Rajasa said Merpati Airlines can still be saved. Hatta said that a coordination meeting to discuss the fate of the state-owned aviation company came up with several options to save it, although the option should be discussed with the House first.

"First, convert its debt, except for taxes. Merpati's debt to the government can be converted to non-cash state investments," Hatta said after the coordination meeting Tuesday, November 12. "Let SOEs become its shareholders. So, there is still a prospect. They can also work with third parties after the book turns blue."

Another option is to convert Merpati's debts to SOEs--especially its 20 partners--and then cut back on operational costs.

"We see the prospects are still good. Later, we will add more flights," Hatta said.

According to Hatta, the government's opportunity to save Merpati is still open because Indonesia is witnessing a growth in flight services. There are still many flight routes that are not available. Merpati, he said, can tap into that market.

Hatta said the government is giving Merpati one month to prepare a business plan. Once the plan is ready, Merpati can make profits buy working with third parties.

ANGGA SUKMA WIJAYA