How Garuda Graft Investigation Affects Its Debt Settlement

Summary

The Attorney General's Office has completed investigating alleged graft in PT Garuda Indonesia Tbk (GIAA) aircraft procurement. During the suspect and evidence transferring process to the public prosecutor, the investigator team revealed an estimated state loss of US$609.8 million or Rp 8.8 trillion. Attorney General's Office spokesperson Ketut Sumedana said the loss occurred in the procurement process of the Bombardier CRJ-1000 aircraft and the acquisition of the ATR72-600 aircraft.

"This procurement was against regulations and laws," Ketut said Wednesday. The suspects also ignored the procurement principles for state-owned enterprises (BUMN) and the business judgment principals, so operational aircraft always lost money. The Attorney General's Office has named the suspects: Setijo Awibowo, Garuda's vice president of strategic management in 2011-2012; Agus Wahjudo, executive project manager of aircraft delivery in 2009-2014; and Albert Burhan, former vice president of the treasury.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.