The government has given the green light for the privatization of the state airline company PT Garuda Indonesia through an initial public offering (IPO) to be carried out next year.

"Garuda's IPO will be included in the company's work program and budget plan for 2009," said Garuda operations director, Ari Sapari, after a meeting with State Minister for State Enterprises Sofyan Djalil on Wednesday.

Previously, Sofyan named Garuda as one of the state enterprises nominated for privatization in 2009 and that the IPO was a part of efforts to restructure the company.

Garuda's has been improving its financial performance, recording Rp 258 billion (US$28.38 million) in net profit last year.

During the previous three years, however, Garuda suffered annual deficits of Rp 197 billion in 2006, Rp 688.4 billion in 2005 and Rp 811.3 billion in 2004.