he State-Owned Enterprises (SOEs) Ministry has not a made decision on the fate of state-owned airline PT Merpati Nusantara Airlines, following a decision by the Surabaya Commercial Court that gave the airline room to seek a peaceful solution with its creditors.
“We will study the decision first,” said the SOEs Ministry's business restructuring and development undersecretary, Aloysius Kiik Ro, in Jakarta on Thursday as quoted by kompas.com, in response to a question on the ministry’s stance on the issue.
The court agreed on Wednesday to let Merit seek a peaceful solution with its creditors, as the judge underlined the entry of new investors to the airline, which has total debts of Rp 10.95 trillion (US$720.73 million).
The court stressed that the airline had to pay its debt to creditors before carrying out further corporate action.
Aloysius said the ministry needed to assure that the court’s decision provided a path for the airline’s privatization that was proposed by the ministry two years ago. He said the privatization could not be implemented because of the absence of investors at that time.
The official said the SOEs Ministry would coordinate with the Finance Ministry and Office of the Coordinating Economic Minister on the privatization proposal.
Previously, Finance Minister Sri Mulyani Indrawati stressed the need for the entry of credible investors if the airline was to be privatized. “Anyone who wants to enter Merpati should not only take the name, but they also take its expertise, technology and money,” the minister said. (bbn)
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