Garuda Indonesia to Lead State-Owned Airline Holding Company

Indonesia’s government has designated Garuda Indonesia as the holding company for the country’s state-owned airlines, with Pelita Air set to become part of the Garuda Group under a broader aviation consolidation strategy.

The plan, led by Indonesia’s State-Owned Enterprises Agency (BP BUMN) and sovereign wealth fund Danantara, aims to strengthen the competitiveness of the national aviation sector through closer integration of state-owned carriers. The consolidation is intended to improve operational efficiency, enhance network planning and create greater synergies across the group.

Alongside the corporate restructuring, the government plans to introduce service improvements throughout the passenger journey, including integrated ticketing systems, upgraded lounges, enhanced cabin products, improved catering, strengthened loyalty programs and investment in workforce development.

Officials said the initiative is designed to position Garuda Group as Indonesia’s leading airline group while strengthening its ability to compete in the regional aviation market through a more efficient and customer-focused operating model.