Jakarta, Feb. 27 -- Indonesia's sovereign wealth fund, Danantara Indonesia, is targeting the completion of a new holding company for state-owned airlines by the first half of 2026.

The proposed holding company will comprise flag carrier Garuda Indonesia, its low-cost subsidiary Citilink Indonesia, and Pelita Air Service, currently under the state oil company Pertamina.

During a press conference on Thursday, Danantara's managing director for stakeholder management, Rohan Hafas, said that the holding company will help optimize operations between the three airlines in various aspects.

"A holding company for Pelita, Citilink, and Garuda means a single booking system, mileage points, registration mechanism, and even enables seat switching. ...