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Garuda Indonesia procurement fraud costs Rp8 trillion in state losses

Tempo - June 27, 2022

Hendartyo Hanggi, M Rosseno Aji, Jakarta – Attorney General Sanitiar Burhanuddin in a press conference on Monday at the Attorney General's Office (AGO) headquarters said that the corruption case of Garuda Indonesia aircraft procurement cost the country up to Rp8.8 trillion.

"We received the audit on state loss report from Garuda Indonesia, which amounts to Rp8.8 trillion," said Burhanuddin in a press conference at the AGO office on June 27.

Head of the Development Finance Comptroller (BPKP) Muhammad Yusuf Ateh in the same press conference said that it was caused by the procurement of a fleet of 23 CRJ-1000 and ATR 72-600 aircraft. He added that the procurement and operations of the airplanes were overvalued. The losses are calculated from operating and procuring short-term regional aircraft from 2011 up to 2021.

"The procurement was too expensive that caused operations costs to exceed [company] income," said Ateh.

As of today, the AGO has named former president director of Garuda Indonesia Emirsyah Satar a suspect over corruption allegations. Emirsyah is suspected of being involved in the procurement of the aircraft.

"We have named a new suspect, namely ES, a former president director of PT Garuda," said Burhanuddin.

Apart from Emirsyah, the Corruption Eradication Commission (KPK) has named other people as suspects, namely former Garuda director Mugi Rekso Abadi and Soetikno Soedarjo. Also present in the suspect-naming press conference was State-Owned Enterprises (SOEs) Minister Erick Thohir.

Previously, the AGO had announced three suspects in the same case, viz. vice president strategic management office Garuda Indonesia (2011-2012) Setijo Awibowo, Garuda executive project manager aircraft delivery (2009-2014) Agus Wahjudo, and Garuda VP treasury management for the 2005-2012 period, Albert Burhan.

Source: https://en.tempo.co/read/1606126/garuda-indonesia-procurement-fraud-costs-rp8-trillion-in-state-losse