Jakarta (ANTARA) – Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) said the plan to designate flag carrier Garuda Indonesia as a holding airline is intended to boost inter-regional connectivity while strengthening the aerospace industry.“Regarding the air transportation sector, I support domestic aerospace and aviation companies, especially our flag carrier Garuda Indonesia,” he remarked in Jakarta on Monday.AHY emphasized that it is vital for Indonesia to continue upgrading its aerospace and aviation capacity to meet rising mobility between numerous islands across its territory, noting that the plan for the airline will open wide avenues toward that goal.“That way, we can expect to lower costs for air transportation while developing the ecosystem of our aerospace industry, which is equally crucial,” the minister stressed.He made the remarks in support of a proposal by Indonesia's sovereign wealth fund, Danantara, and the State-Owned Enterprises Regulatory Agency (BP BUMN) to merge Garuda Indonesia with Pelita Air, a subsidiary of state-run energy company Pertamina.”As we develop Garuda Indonesia into our holding airline, Pelita Air will become part of Garuda Indonesia,” BP BUMN Head and Danantara Chief Operating Officer (COO) Dony Oskaria said in a written statement on Friday (July 24).He argued that the move is necessary to strengthen national airlines, as the aviation industry requires careful planning and rapid decision-making in its operations.”A sector that requires high precision and must be managed day by day and minute by minute is aviation. As aircraft operate, we must be able to determine the profitability of each flight,” he said.As the government moves to consolidate Pelita Air into Garuda Indonesia, Danantara Indonesia and BP BUMN have urged the flag carrier to comprehensively improve its services across pre-flight, in-flight, and post-flight stages.The proposed improvements include integrated ticketing systems, lounge quality, in-flight experiences and catering, flight crew services, airline loyalty programs, and human resource development.Merging the airlines is part of President Prabowo Subianto's broader initiative to reduce the number of state companies and their subsidiaries from 1,077 entities to no more than 350 by the end of 2026.