An Indonesia academic has called for the upcoming Garuda Indonesia initial public offering (IPO) to be kept transparent to avoid public shares from being acquired or dominated by “certain individualsâ€.
Windijarto, an assistant university dean in Surabaya, said the IPO should ensure the airline is owned by members of the Indonesian general public.
He said the national carrier should use the IPO to improve its competitive standing among international airlines.
Quoted in Bisnis.com, the financial expert and educator called on the airline to utilise the momentum generated through the financial restructuring of the company to also revamp its management, upgrade efficiency and improve service standards.
Speaking at a seminar in Surabaya entitled ‘Should Garuda Go Public’, Windijarto explained, “Competition in the airline industry is currently very intense to the point where a profit margin of around 1.8 percent from the total investment is already good.
“In conditions such as these, efficiency must be a top priority for every airline company.”
