/data/photo/2020/06/02/5ed62891e1576.jpg "Corruption Scandal at Garuda from Time to Time Page all")
KOMPAS.com – status BUMNnasib PT Garuda Indonesia Tbk (Persero) is not only determined by performance on paper. This airline is also inseparable from the government regime.
Recently, SOE Minister Erick Thohir together with the Working Committee (Panja) of the House of Representatives Commission VI agreed to save Garuda Indonesia from the brink of bankruptcy. The company is already in heavy debt from its creditors.
In the agreement, Commission VI of the Indonesian House of Representatives approved a plan to provide state capital participation (PMN) from APBN money worth Rp. 7.5 trillion from the government for Garuda Indonesia in the 2022 fiscal year.
However, the PMN will be disbursed if Garuda reaches a peace agreement with creditors in the PKPU.
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Corruption at Garuda since New Order
Had experienced a golden age in the 1980s when led by Wiweko Soepono, Garuda in the following years experienced a decline due to collusion, corruptionand nepotism (KKN).
The recent clean-up efforts of the Minister of SOEs, Erick Thohir, recalled the same efforts made by the Minister for the Utilization of SOEs, Tanri Abeng, who served from 1998-1999.
As reported Kompas Daily, September 10, 1998, KKN has seriously undermined two state-owned airlines, namely Garuda Indonesia and Merpati.
Tanri Abeng revealed, specifically at the state-owned Garuda Indonesia, around 18.27 million US dollars per year or around 27.1 billion rupiahs per year could be saved if the eight joint operation (KSO) that smelled of KKN within Garuda were eliminated.
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According to him, there were eight joint operations (KSOs) that created a high cost economy in the procurement of goods and services within Garuda during the New Order or New Order regime.
Cooperation burdens Garuda
First, namely the transfer of cargo warehouse management to PT Angkasa Bina Wiwesa (ABW). ABW, according to Kompas records, is a business owned by the younger brother of former President Suharto from another mother and father, Martini Tubagus Sulaeman.
From the warehousing management at Soekarno-Hatta Airport, ABW can earn Rp 6 billion in revenue every month, but only Rp 300 million is received by Garuda Indonesia.
Meanwhile, the operational costs, building usage, telephone and electricity are borne by Garuda.
According to the ten-year agreement signed by the President Director of Garuda Wage Mulyono and the President Director of ABW Martini Nita Karyati in 1994, it was stated that the ABW would deposit a minimum of 10 percent of gross income, or around Rp. 200 million per month to Garuda.
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From the data obtained, the total revenue in 1995 was Rp. 28.5 billion, but that which was paid to Garuda was Rp. 3.1 billion.
Meanwhile, in the period of 1996 to May 1998, Garuda received Rp. 105 billion in revenue from Rp. 39.6 billion.
Bimantara Entry
The next KKN project whose appointment was terminated by Tanri Abeng’s office was aircraft insurance broker PT Bimantara Graha Insurance Broker which was founded by Bambang Trihatmodjo in 1994.
The company was once sued by Garuda employees because it was strongly suspected that it smelled like KKN. Before the Cendana family and their insurance company entered, Garuda was free to choose an insurance broker for its aircraft fleet.
However, then Garuda came under pressure and had to go through the company of the son of former President Suharto.
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Suharto’s sons long before in the era of President Director Wiweko Soepono had come to Garuda Indonesian Airways to offer insurance services.
However, at that time Wiweko was still able to flatly refuse. He advised to learn first about the insurance to be offered.
Mark-up aircraft
The Office of the State Minister for the Utilization of SOEs stated that another project is the purchase (operational lease) of the MD-11 aircraft, the procurement of which involves Bambang Trihatmodjo’s Bimantara.
According to Kompas records, the rental price for this wide-body aircraft made by McDonnell Douglas (later merged with Boeing) is quite high, 1.1 million US dollars/plane/month or 6.6 million US dollars per month for the six MD-11s operated by Garuda.
While the price of the aircraft rental can actually be obtained cheaper, around 600,000 – 700,000 US dollars per aircraft.
“So there it is mark-up in the procurement of Garuda Indonesia’s MD-11 fleet,” said the source Compass.
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With the rental price and the monetary/economic crisis hit, the operating lease was deemed very burdensome for Garuda’s finances.
Garuda’s board of directors, before Robby Djohan was appointed, seemed a bit hesitant to make the decision to return the MD-11 to the company lessorher.
Soepandi, President Director of Garuda, did mention that he would return the MD-11 trijet aircraft to Boeing.
However, the implementation was only carried out the following July by the directors under Robby Djohan who wanted to quickly reduce the number of losses.
The office of the Minister of State for the Utilization of SOEs also mentioned the cancellation of cargo contracts in Australia and America.
Then the termination of the agency for aircraft engine and engine module maintenance and the cancellation of the purchase of Fokker F-100 aircraft and a review of the agency contract in Japan.
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According to records Compass, cargo and agency contracts in Japan involving the Bimantara group.
Apart from the so-called Tanri Abeng Office, Compass also note that there are elements of mark-up and KKN in the procurement of the Garuda Indonesia Boeing 737-300/400 simulator.
From the investigation by the Inspector General of the Ministry of Transportation, it is known that there is a difference of 12.2 million US dollars for the procurement of the simulator. The price is said to be 64.1 million dollars, even though the same simulator can be purchased for around 51.9 million US dollars.
Suharto’s grandson also joined
Still in the vicinity of Garuda but there is no mention of the office of the Minister of State for the Utilization of BUMN, namely the company that is said to belong to Ary Sigit, the son of Sigit Harjojudanto or the grandson of former President Suharto.
PT Autotrans Indonesia which is engaged in ground handling at Ngurah Rai Airport, Bali. According to Garuda employees, this company has been accused of receiving unfair contracts.
The company’s contract offer was rejected because it was too expensive. However, before the final decision was taken, Garuda received a call from a high-ranking state official who said that he would accept Autotrans’s offer.
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According to records, Hutomo Mandala Putra, who is familiarly called Tommy and his PT Artasaka Nusaphala, also “played” at Garuda Indonesia, when this BUMN was going to lease a number of Fokker F-28s to its subsidiary Merpati Nusantara.
Somehow, in the end the plane was sold to Artasaka Nusaphala who then offered the plane to Merpati, but was rejected by the President Director Ridwan Fataruddin on the grounds that the rental price was too expensive.
Then, Artasaka Nusaphala tried to enter Merpati by offering the CN-235 aircraft made by IPTN. Ridwan Fataruddin also refused because the rental price of 110,000 US dollars per month was too expensive.
Merpati’s ability at that time, according to Ridwan, was only US$60,000 or a maximum of US$70,000 per month.
Because of his courage to reject these offers, Ridwan Fataruddin had to pay a high price, he was removed from the helm of Merpati Nusantara.
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The KKN element also touches on Garuda’s catering department, Angkasa Citra Sarana, where one of the Cendana family has access to supply a number of food and drinks for the Garuda kitchen.
The goods supplied are wine and chicken meat. So influential was the Bimantara group in the Garuda cargo sector in Japan that once one of the leaders of Garuda Indonesia in Sakura Country asked to be sent back to Jakarta.
He asked to be replaced with someone else because there was a mismatch between that person and this group.
Latest corruption
Some time ago, Garuda was again hit by the issue of corruption. Recently, Erick Thohir reported the alleged corruption case in the purchase of the ATR 72 series 600 aircraft to the Attorney General’s Office (AGO).
Apparently, the AGO has also started an investigation into the corruption case in Garuda since December 2021. This is not the first time the state-owned airline company has stumbled upon a riot case.
In 2020, the former President Director of PT Garuda Indonesia, Emirsyah Satar, was also found guilty in the bribery case for the procurement of aircraft and aircraft engines as well as money laundering.
In his report to the AGO in January 2022, Erick Thohir claimed to have evidence of alleged corruption at Garuda. Erick submitted the evidence to the AGO, such as the results of an audit by the Financial and Development Supervisory Agency (BPKP) in this case.
“There are data involving other institutions, from BPKP, yes, because this is part of the audit, the government is BPKP,” said Erick at the AGO Building.
According to Erick, before he made this report, an investigation had been carried out. From the results of the investigation, valid data was obtained regarding the alleged corruption in the purchase of the ATR 72-600 aircraft.
“Garuda is currently in the restructuring stage, but what we know is that the data is valid, indeed, in the process of procuring its aircraft, the leasing shows indications of corruption with different brands,” he said.
This is not the first time that Emirsyah Satar’s name has been dragged into the alleged rasuah case in Garuda. It is known, Emirsyah was sentenced to 8 years in prison and a fine of Rp. 1 billion subsidiary to 3 months in prison by the judges of the Jakarta Tipikor District Court on May 8, 2020.
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In addition, Emirsyah was also sentenced to additional punishment, namely paying replacement money worth 2,117,315.27 Singapore dollars, subsidiary of 2 years in prison. Emirsyah was found guilty in the bribery case for the procurement of aircraft and aircraft engines at PT Garuda Indonesia.
He was also charged with the crime of money laundering (TPPU). However, Emirsyah’s verdict was lighter than the KPK prosecutor’s demands, namely 12 years in prison and a fine of Rp. 10 billion, subsidiary to 8 months in prison.
In the first indictment, Emirsyah was proven to have received money in the form of rupiah and a number of foreign currencies consisting of Rp 5,859,794,797, then 884,200 US dollars, then 1,020,975 euros, and 1,189,208 Singapore dollars.
He received the money through the founding entrepreneur PT Mugi Rekso Abadi who is also the beneficial owner of Connaught International Pte Ltd.
The money was used to smooth out a number of procurements being carried out by PT Garuda Indonesia, namely the Trent 700 engine Total Care Program (RR) and the procurement of Airbus A330-300/200 aircraft.
Then, procurement Airbus A320 aircraft for PT Citilink Indonesia, aircraft procurement Bombardier CRJ1000, and procurement ATR 72-600 aircraft.
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