Indonesian Government to Summon Garuda’s Auditors and Directors Next Week
PT Garuda Indonesia Tbk (GIAA).

JAKARTA (TheInsiderStories) – Flight carrier, PT Garuda Indonesia Tbk (IDX: GIAA) plans to get a fund of around US$900 million in 2020. It aims to pay maturity debt in one year of $1.6 billion and over one year of $77 million, said the company in the official prospectus on Monday (12/16).

It stated, the maturity debt will be paid by three schemes. Firstly, the flight carrier will issue without special guarantee Global Sukuk of $750 million. The proceed of Global Sukuk will be used for refinancing matured Global Sukuk on June 2020.

Besides Global Sukuk, the company also considers conducting bonds private placement with a value of $750 million. The bonds has tenor until 2024 and will be spent to pay debt which matured in one year. The company did not mention the involved parties of private placement yet it will announce in the newspaper soon.

The last option which takes the company into account is the peer to peer lending in dollar currency of $500 million. The transaction has tenor until 2024 and aims to pay debt matured in one year.

“Considering the transaction is above 50 percent of the company’s capital, so the company should hold a shareholders meeting on Jan 20, 2020, to get approval,” said the management.

Meanwhile, Garuda Indonesia was currently facing issues related to the smuggling of Harley Davidson and Brompton involved the CEO and other five directors. Therefore, the minister of State-Owned Entreprises Erick Thohir fired Ari Askhara as the CEO and replaced by Fuad Rizal as the acting CEO.

The minister will also examine closely all parties involved in this case and believes the finance minister and the customs director-general will process them fairly and thoroughly. Thohir claimed to have valid evidence from the board of commissioners and audit committee and made sure Harley Davidson’s motorbike was owned by Askhara.

Finance minister Sry Mulyani Indrawati said, based on the investigation, the value of the Harley motorbike was Rp800 million ($57,142) while the bicycle was around Rp50 million. Thus the total value of around Rp532 million to Rp1.5 billion.

“Currently the customs and excise department continues to carry out further investigations. We also see Mr. Ari Askhara has a forest valued at Rp300 million for home renovations. We also see transfers to his account for three times worth Rp50 million,” she said.

The minister will also look at financial transactions from and to related parties to bring the motorbike to Indonesia.

“We are still continuing to investigate the initial motive of whether this is on personal initiative or the interests of others. We will also show the mode of smuggling of goods into Indonesia through various channels, through airports and ports,” Indrawati said.

On the States Officials’ Wealth Report Askhara did not mention him owning a Harley Davidson motorbike. In the wealth report, as quoted from the Anti-graft official website in 2018, he only reported three types of vehicles, none of which was a Harley Davidson bike.

Askhara was one of 21 passengers who boarded a flight from France to the Garuda Maintenance Facility (GMF) hangar. The plane, which arrived in Jakarta on November 17, was found to have carried several pieces of spare parts of a limited edition Harley Davidson manufactured in the 1970s.

The parts were packed separately into 15 boxes, and checked in with other passenger suitcases, meaning that they were not listed as cargoes.

Garuda Indonesia also had to be punished by Indonesia’s Financial Service Authority (FSA) and the Ministry of Finance related to financial statements per December 2018. From the evaluation, they imposed several sanctions on the airline and its directors. FSA stated, its directors would each be fined Rp100 million, in addition to another collective sanction that will be imposed on directors and commissioners who had signed off on the results.


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