Senior minister clarifies on violation on Garuda's financial report

Senior minister clarifies on violation on Garuda's financial report

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan (right) and Deputy for the Maritime Sovereignty Coordination of the Coordinating Ministry for Maritime Affairs Purbaya Yudhi Sadewa (left) during a coffee morning briefing with journalists in Jakarta on Tuesday (July 2, 2019). (ANTARA/Ade Irma Junida/bp)

Jakarta (ANTARA) - Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan came clean on the violation by PT Garuda Indonesia in its financial report for December 31, 2018, following examination of the Finance Ministry and Financial Services Authority (OJK).

During the coffee morning program with reporters here on Tuesday, Pandjaitan made assurance that all lies will be exposed due to the level of transparency built until now.

"Hence, nowadays, we are not allowed to lie anymore. Can't anymore. Sorry, in the past, a minister might be deceived, but now he or she can't. Everything is now monitored thoroughly and makes the government now much more transparent in the decision-making process," Pandjaitan emphasized.

The minister admitted that the national flag carrier had, since long, been reeling from several problems, including the steep price of purchasing an aircraft.

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The former coordinating minister for political, legal, and security affairs also hinted at the government's inefficiency in some cases, such as allowing state oil company Pertamina to monopolize the sales of aviation turbine fuel, thereby resulting in the price becoming more expensive.

"Why should Pertamina monopolize it, so that our oil is more expensive than what it is in Singapore? This should not happen. We must manage it. Why is it cheaper in Singapore? Yes, we make our competitors, make two, there are AKR, Shell, or whoever. However, it should be limited and not too many," he explained.

Pandjaitan confirmed that the government will closely scrutinize the violation committed by Garuda Indonesia. He also reiterated that no violations should occur in order to improve the company's financial reports.

"We can't lie by making up our financial reports. That could be considered a crime under the law. Moreover, Garuda is an open company. Hence, if there is such a deviation, we must be careful in future," he stated.

The minister also chose to not speak extensively on investor interest in the problems faced by Garuda Indonesia. Moreover, the airline had listed its shares on the Indonesia Stock Exchange (IDX) with the GIAA stock code.

"It depends on them managing this problem," he added briefly. Related news: Foreign airline operations should be studied: Minister
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