Not a decent move by the 5-star airline. (Image via: InsideFlyer UK)

Garuda Indonesia Fined by IDX, OJK, Finance Ministry

Alfonsus Adi Putra
Market & Investment
Indonesia Market
Jun 28, 2019
1965
Indonesian Stock Exchange (IDX) decided to impose Rp250 million fine on PT Garuda Indonesia (Persero) Tbk due to misrepresentation of financial statements for the 1st quarter of 2019, Friday (28/6).

β€œTo impose sanction according to IDX Regulation number I-H regarding sanctions, in form of Written Warning III and a fine of Rp250 million,” stated IDX company secretary, Yulianto Aji Sadono.

Not only the fine but also IDX required Garuda Indonesia to restate its financial statement for the 1st quarter of 2019 and its annual report in 14 days, which means no later than 26 July, according to the sanction imposed by Financial Service Authority (OJK) to any incorrect financial statement.

According to IDX, the airline had violated IDX regulation in terms of presenting its financial performances. Moreover, OJK found out that Garuda Indonesia covered the fact that 2 of its deputy commissioners did not sign the annual report, in accordance with their disagreements to the report. This was not explained in the report; thus, Garuda Indonesia violated the regulation.

In the annual report, Garuda Indonesia wrote a US$239 million transaction from 15 years of contract with PT Mahata Aeroteknologi, in order to provide WiFi in aircraft of Garuda Indonesia and Citylink.

OJK itself slapped Garuda Indonesia with Rp100 million fine. In addition, Garuda Indonesia is required to hold incidental public expose, in order to explain to the investors regarding the sanction and fine imposed by IDX and OJK.

The fine itself was slapped onto each member of Garuda Indonesia, while a collective fine of the same amount was imposed on the board of directors and commissioners of Garuda Indonesia.

Meanwhile, Kasner Sirumapea and the accounting firm, Tanubrata, Sutanto, Fahmi, Bambang and partners (a member of BDO International Ltd), did not escape the fine as well. The Ministry of Finance stated that they violated auditing standards and failed to do internal quality control.

As a result, the ministry froze Sirumapea's auditor membership for a year, while written warning would be given to the firm. In addition, the firm also had to prove that it has fixed its internal supervision by the next 3 months.

Source: https://www.cnnindonesia.com/ekonomi/20190628130337-92-407313/bei-denda-garuda-rp250-juta-karena-langgar-aturan-lapkeu

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