The Government of Indonesia is contemplating using securitization as part of a rescue package for two state-owned airlines, Garuda Indonesia and Merpati Nusantara Airlines. If successful, ABS technology could potentially aid other ailing state-supported companies, sources say.

Sugiharto, minister for state enterprises, has met with officials at the two carriers to discuss the implementation of a restructuring fund aimed at injecting new capital while also removing sizeable debts from their balance sheets.

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