Indonesia Seeks to Establish Airline Holding Company by Mid-2026

15 hours ago 4

February 27, 2026 | 11:15 am

TEMPO.CO, Jakarta - Sovereign wealth fund Danantara Indonesia seeks to establish a holding company for state-owned airlines by this year's first half. It will consist of Garuda Indonesia, its subsidiary Citilink, and Pelita Air Service, owned by the state energy giant Pertamina. 

Managing Director of Stakeholders Management at Danantara Indonesia, Rohan Hafas, said the consolidation aims to improve efficiency and optimize the booking systems across the three airlines.

“Merging Pelita, Citilink, and Garuda would allow for one booking system, one Garuda point program, shared mileage, unified registration, and even interchangeable seating. That would certainly make operations more efficient,” said Rohan, as quoted by Antara on Friday, February 27, 2026.

The merger is also expected to address fleet limitations experienced by each carrier, especially in overlapping flight routes.

"The number of aircraft combined will be greater. Take popular destinations like Surabaya for example. Citilink, Pelita, and Garuda all fly to Surabaya. Why not serve it under a single entity?" Rohan said.

Through booking integration and operational cooperation, Danantara hopes to generate additional revenue, especially for Garuda Indonesia, which continues to work on strengthening its financial performance.

“Hopefully it can be finalized in the first half of 2026, because this is crucial to generating extra income without adding aircraft,” Rohan said.

“Whether it will take the form of a merger or another structure is something we must decide soon. It requires careful calculation, as accounting and merger issues are not simple,” he said.

Previously, Chief Operating Officer of Danantara, Dony Oskaria, targeted the consolidation process of the state-owned airlines to be completed in the first quarter of 2026. In this scheme, Garuda Indonesia is designated as the parent company. "Garuda Indonesia will be the parent holding company, with Citilink and Pelita Air under it," said Dony.

Read: Pertamina CEO Discusses Merger Incentives with Purbaya

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