Jakarta (ANTARA News) - Chief Economics Minister Hatta Rajasa said it is difficult for the government to advance more money to ailing state-owned Merpati Nusantara Airlines (MNA) to pay for its Rp6.7 trillion debts.

"Please discuss internally first and then bring the results to a coordination meeting, to see its business plan. If it is illogical, well, just close it," Hatta said here on Thursday.

MNA has failed to repay debts to a number of financiers including state lender Bank Mandiri and the government itself.

The government, however, still gives an opportunity for the airline to rise and settle its internal problem, Hatta said.

Last week, PT MNA named PT Bentang Persada Gemilang and PT Amagedon Indonesia joint operation partners as investors and to improve the performance of the airline.

Minister for State Enterprises Dahlan Iskan said the debt ridden airline would form a new subsidiary PT Merpati Aviation Service.

"Merpati Aviation Service will carry out all business expansion plan prepared by the two joint operation partners," Dahlan said.

Last Tuesday, Dahlan said the management of PT MNA is in the process of divesting subsidiaries PT Merpati Maintenance Facilities (MMF) and Merpati Training Center.

He said the management of PT MNA has decided to allow MMF to be taken over by state-owned asset management company PT Perusahaan Pengelolaan Aset, to seek investors.

MNA has a big fleet to serve domestic flights including pioneer flights to isolated areas mainly in eastern Indonesia.(*)

Editor: Heru Purwanto
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