Jokowi Dissolves Sah, This is the Debt and Severance Pay that Merpati Airlines Must Pay to Former Employees

President Joko Widodo (Jokowi) has officially dissolved Merpati Airlines. The decision is stipulated in Government Regulation (PP) Number 8 of 2023 concerning the Dissolution of the State-Owned Enterprise PT Merpati Nusantara Airlines, enacted on February 20, 2023.

The basis for the dissolution is that Merpati was declared bankrupt by the Panel of Judges of the Surabaya Commercial Court, as stated in Decision Number 5/Pdt.Sus-Pembatalan Perdamaian/2022/PN.Niaga.Sby. Jo. Number: 4/Pdt.Sus-PKPU/2018/PN.Niaga.Sby. dated June 2, 2022.

The PP states that the Surabaya District Court's decision also shows that Merpati was in a state of insolvency, meaning the debtor's liabilities exceeded its assets and it was unable to pay its debts.

The completion of the company's dissolution, including liquidation, must be completed within five years of Merpati being declared bankrupt.

"All remaining assets from the liquidation of the State-Owned Enterprise PT Merpati Nusantara Airlines shall be deposited into the state treasury," reads Article 4 of the PP.

Despite being declared bankrupt and dissolved, the state-owned enterprise (SOE) must still pay creditors' entitlements, including severance pay to former employees. Funding will come from the sale of Merpati's assets.

According to *Katadata*, all creditors registered and verified on the First Stage Distribution List will receive a distribution as determined by the court.

Furthermore, 1,225 former Merpati Airlines employees received severance pay totaling Rp 54.8 billion. In addition, the court determined the distribution of outstanding salaries to 50 former Merpati Airlines employees amounting to Rp 3.8 billion.

The President Director of PT Perusahaan Pengelola Aset (PPA), Yadi Jaya Ruchandi, stated that the First Stage Distribution List determined by the court is a significant milestone in the dissolution of Merpati Airlines.

"This distribution is expected to provide certainty in settling Merpati Airlines' obligations to creditors, prioritizing fairness for all parties, including former employees," he said in a press release on Monday (January 2nd).