Indonesian president Susilo Bambang Yudhoyono has issued a statement declaring that the acquisition of Indonesian air carrier Batavia Air by AirAsia be done in strict compliance with the Aviation Law No. 1 of 2009 that mandates a 51% share for any Indonesian air carrier must be held by Indonesian interests.
Bisnis.com reports that said that the entire acquisition of Batavia Air would be reviewed with final approval of the transaction resting solely with the Minister of Transportation.
President Yudhoyono said: “”I have checked and it appears that the matter has yet to be presented to the Minister of Transportation. As a matter of fact, the acquisition of Batavia Air by Air Asia must follow a set process in accordance with Law No. 1 of 2008. If there is cooperation, the majority share must be owned domestically.”
Saying he seeks cooperation that is profitable and acceptable to all parties, the President underlined that final and full and final approval of the approval rests with the Minister of Transportation.
[AirAsia Seeking to Purchase Batavia Air]
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