Merpati restructuring to be completed this year

Merpati restructuring to be completed this year

Merpati Airplane. (FOTO ANTARA)

Jakarta (ANTARA News) - The government expects to complete comprehensive restructuring of cash-strapped carrier Merpati Nusantara Airlines later this year.

"We want Merpati to continue to exist. This month, all the obligations towards employees will be completed, and that will be the basis to continue the privatization of Merpati," Deputy State Enterprises Minister for Restructuring and Business Development, Aloysius K. Ro, said here on Tuesday.

He said as part of the process of restructuring of Merpati, debt payments to its employees are being made.

The company has paid what it owed to 900 of its 1,120 workers through the industrial relations settlement mechanism, he said.

"The amounts owed to 85 percent of Merpati employees have been settled. Hopefully, the obligations to all employees will be completed later this month," he said.

As the proxy of Merpati stakeholder, the State Enterprises Ministry is proposing to the Coordinating Minister for Economic Affairs to endorse the privatization of Merpati, he said.

"We are waiting for a letter of approval from the privatization committee and will later ask for a seal of approval from the House of Representatives to continue the privatization of Merpati," he said.

As part of the privatization program, the government will invite strategic investors to invest in the carrier, he said.

Some time ago, two investors from China and Europe had expressed keen interest in developing Merpati by setting up a consortium with an Indonesian company, he said.

Reported by Royke Sinaga

EDITED BY INE.

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