"The cost of Merpati`s bankruptcy far exceeds the cost of saving it," the Chief Economic Minister Chairul Tanjung stated.Jakarta (ANTARA News) - The government has decided to save PT Merpati Nusantara Airlines as the cost of its bankruptcy is huge, Chairul Tanjung stated here on Thursday.
"The cost of Merpatis bankruptcy far exceeds the cost of saving it," the chief economic minister remarked after a coordination meeting on state-owned companies.
Chairul pointed out that Merpatis condition was grave due to its huge debt, but the government is resolute to help it to operate normally again.
In connection with that, it will await the decision of the working committee on Merpatis restructuring of the House of Representatives Commission VI, which has just been set up to discuss the future of the state-owned airlines that had so far served remote destinations.
"We will follow up with the results of the meeting. Several scenarios have already been prepared, which include converting the governments debt into its capital. We have not yet taken a decision on this, but it is still a mere option. It will all depend on the results of the working committees meeting," he emphasized.
Since February 2014, Merpati has stopped serving most of its routes due to an operational fund shortage that has led the Ministry of Transportation to freeze its Air Operation Certificate (AOC).
The company, which was established on September 6, 1962, currently has a total debt amounting to around Rp7.6 trillion, although the government has injected funds into the company on several occasions.
At the end of 2013, Merpati suffered a loss of Rp1.22 trillion with corporate capital negatively accumulating to around Rp5 trillion.
Currently, Merpati is conducting restructuring and revitalization under the management of PT Perusahaan Pengelola Aset (PPA) and in this regard, it requires around Rp150 billion.
One of the options to save Merpati is converting its debt into equity. Its shareholders have agreed to sell two of its business units: Merpati Maintenance Facility and Merpati Training Center to PT PPA.(*)
Editor: Heru Purwanto
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