Garuda Indonesia has appointed Indonesia’s Mandiri Securities to provide advice on the initial public offerings (IPOs) for two of its subsidiaries, but there is still a hurdle to overcome.

The two subsidiaries are: GMF AeroAsia, Garuda’s maintenance, repair and overhaul provider; and Aerowisata, its inflight catering company, which also is involved in cargo handling, hotels, resorts and land transportation.

GMF AeroAsia CEO Richard Budihadianto told Aviation Week last year that the company wanted to conduct an IPO so it can become an independent entity and raise money to fund construction of fourth and fifth maintenance hangars. GMF wants to expand its often-full facilities at Jakarta’s Soekarno-Hatta International Airport.

Garuda’s president director, Emirsyah Satar, however, now says it is unclear when GMF and Aerowisata will be ready for IPOs. Under Indonesian law, subsidiary companies are forbidden from having separate listings on the Jakarta stock exchange if they derive 50% or more of their total revenue from their parents. Satar says GMF and Aerowisata both generate business from third-party customers, but Garuda still accounts for 70% of the subsidiaries’ total revenue.