AirAsia has unveiled plans to establish a new holding company in Indonesia as it looks to further capitalise on the growth of the Indonesia market. This was according to an announcement on Bursa Malaysia.
This will be done through the disposal and subsequent conversion of its perpetual securities investments in PT Indonesia AirAsia (IAA) into new shares in PT Rimau Multi Putra Pratama TBK (RMPP). RMPP is a company which is listed on the Indonesia stock exchange which will serve as the new holding company of IAA.
The rationale for the transaction is to support the financing needs of AirAsia’s Groups growth ambition in Indonesia. AirAsia has plans to grow IAA significantly, aiming to double fleet size by 2020. The move will also improve the visibility, transparency and public accountability of IAA to the passengers.
Additionally, the group aims to increase IAA and AirAsia group’s visibility as a low cost carrier and enhance its profile as an ASEAN airline. This will allow it to subsequently widen the reach to market its offerings and grow its market position in the ASEAN region.
IAA was incorporated in on 6 December 1999 as a limited liability company which was established under the laws of the Republic of Indonesia. Meanwhile, RMPP was incorporated in July 1989 as a limited liability company established under the laws of the Republic of Indonesia under the name of PT Centris Multipersada Pratama. The name of the company was changed to RMPP in June 2014.
Currently, the principal activities of RMPP are in transportation, warehouse, industry and general trade.