At peace with the Australian KPPU, Garuda pays a fine of Rp. 241 billion

JAKARTA, KOMPAS.com – PT Garuda Indonesia (Persero) Tbk agreed to reconcile with the Australian Competition and Consumer Commission (ACCC) regarding a lawsuit against the price fixing of cargo fuel costs (fuel surcharge) in the Federal Court of New South Wales, Australia.

Quoting the disclosure of information, the Australian Federal Court has imposed a fine on the airline company with the issuer code GIAA of 19 million Australian dollars (AUD) or the equivalent of Rp 214 billion (exchange rate of Rp 11,300) to the Business Competition Supervisory Commission (KPPU) Australia.

The company filed an appeal regarding the decision in 2019. In the end, however, Garuda chose to pay the fine accompanied by a court fee from the ACCC in installments for 5 years, starting December 2021.

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Director of Finance and Risk Management of PT Garuda Indonesia Prasetio explained that the lawsuit from the ACCC has been going on since 2014 ago.

“According to the explanation as we have stated above, the related legal cases are not new cases. Instead, they have been going on since 2014 and the Company has routinely submitted the obligation to disclose information regarding its developments in accordance with applicable regulations,” he said in the prospectus, Tuesday (20/4). / 2021).

Initially, GIAA was found not guilty in 2014 by the Australian District Court in the case of setting the cost of fuel surcharge cargo. The Australian KPPU then submitted an appeal and cassation to the Australian High Court.

In 2017, Garuda was found guilty by the High Court there. Subsequently, the case was submitted back to the New South Wales District Court.

In 2019, the New South Wales District Court finally decided that Garuda Indonesia should pay the so-called fine.

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Then on April 15, 2021, Garuda stated that it was ready to pay a fine of Rp. 241 billion as a sign of peace and withdrew the appeal that had been previously filed. Meanwhile, with the lawsuit and peace, GIAA’s shares on the Indonesia Stock Exchange (IDX) at the close of trading today, fell 0.60 percent or 2 points to 330.

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