Indonesian government investigates Garuda Indonesia for alleged corruption involving aircraft lease and finance contracts

A senior Indonesian government official charged with investigating corruption and other crimes confirmed that authorities are currently investigating allegations of corruption at Garuda Indonesia involving certain aircraft finance and lease contracts.

Indonesian Deputy Attorney General for Special Crimes Ali Mukartono told Indonesian media Republika.co.id that a team of investigators from the Attorney General’s office is investigating uncovered information regarding allegations of corruption in certain financing and aircraft leasing contracts with the national carrier.

Republic, which is published in print and online newspapers, is one of Indonesia’s leading news organizations.

“Yes, it’s an investigation. It’s related to leasing (and financing), aircraft leasing, ”he said. Republika.co.id when asked today.

He refuses to say more – arguing that the investigation is still in its infancy – but adds that the investigations fall under section 3 of Indonesia’s corporate corruption law. Reports online show that a criminal act, under section 3, is when a recipient knows or should have known that the gift or promise he received was made with corrupt intent.

Indonesia’s Deputy Minister for State-Owned Enterprises Kartika Wirkoatmodjo recently revealed that Garuda Indonesia is technically bankrupt because it has billions of US dollars in debt.

The national carrier is now negotiating with its creditors, including its 32 aircraft lessors, to restructure its debt and avoid liquidation.

Wirjoatmodjo has publicly stated that Garuda’s main problem is that his rental costs are more than reasonable and that he has too many types of planes in his fleet.

Indonesian politicians and the media have questioned why Garuda often pays higher rental rates than other airlines.

Garuda Indonesia has already been the subject of a corruption investigation. The Indonesian Corruption Eradication Commission (KPK) successfully prosecuted Emirsyah Satar, who was the CEO of Garuda Indonesia from 2005 to late 2014. Early last year, Satar was sentenced to eight years in prison. for corruption and money laundering in connection with the purchase of Airbus and Rolls-Royce aircraft. engines.

The background photo, from Kompas.com, shows Indonesia’s Deputy Attorney General for Special Crimes Ali Mukartono doing a door-to-door interview with reporters in Jakarta.

Related stories:

Garuda Indonesia answers questions about why it pays higher aircraft rental rates (November 8, 2021)

Another creditor sues Garuda Indonesia (October 26, 2021)

Indonesian court grants Garuda Indonesia some financial respite (October 21, 2021)

Government Says Garuda Indonesia Liquidation Possible (October 19, 2021)


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