Changing Human Resource Management in an Indonesian State Owned Airline Company: An Effect of Privatization Process Case Study: PT Merpati Nusantara Airlines

Privatization is known to be a solution to generate revenue and cut expenditure for the government, as part of the public sector reform or structural adjustment program.. The core of privatization is the transfer of state-owned enterprises to private ownership (Kirkpartrick, 2002: 121-132). For many developing countries, privatization was seen as an omnibus policy which could reduce the budget deficit by forgoing subsidies to public enterprise, reduce debt by writing down the proceeds received from the sale of public enterprises, stimulate private sector investment and thus lower public sector investment, signal a new political climate and increasing the efficiency of former state-owned enterprises (Hoeven & Sziracki, 1997:4).