JAKARTA (XFNews) - The government plans to sell PT Garuda Indonesia to strategic investors in order to boost the national airline's competitiveness and as interest among investors is high, Kompas reported citing State Minister for State Enterprises Sugiharto.
Sugiharto said Garuda is planning an initial public offering in 2009 "but we suggest to speed it up so that strategic investors can immediately enter."
"It's best to start in 2006 as many investors are interested," he said.
Garuda is struggling to stay afloat amid rising fuel costs, tighter competition and debt repayments amounting to some 100 mln usd a year.
Garuda president Emirsyah Satar said earlier this month that creditors in London agreed to restructure the airline's 515 mln usd debt by rescheduling its annual principal payments.