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KPK seeks eight years for ex-Garuda boss in procurement graft case

The KPK has asked the Jakarta Corruption Court to hand down a sentence of eight years, a Rp 1 billion (US$61,061) fine and a $86 million restitution to Emirsyah Satar for corruption related to an aircraft procurement deal for the flag carrier that incurred $609 million in state losses.

News Desk (The Jakarta Post)
Jakarta
Fri, June 28, 2024 Published on Jun. 28, 2024 Published on 2024-06-28T15:41:13+07:00

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KPK seeks eight years for ex-Garuda boss in procurement graft case Emirsyah Satar prepares to leave a courtroom on June 27, 2024 after a sentence demand hearing in his corruption trial at the Jakarta Corruption Court. Corruption Eradication Commission (KPK) prosecutors demanded the court to sentence the former Garuda Indonesia president director to eight years in prison and a fine of Rp 1 billion (US$61,000) for graft related to his role in a rigged deal to procure aircraft for the flag carrier. (Antara/Erlangga Bregas Prakoso)

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rosecutors from the Corruption Eradication Commission (KPK) lodged a sentence demand of eight years in prison for Emirsyah Satar at a hearing on Thursday at the Jakarta Corruption Court, in the graft trial over Emirsyah’s alleged role in a rigged airplane procurement during his tenure as president director of flag carrier Garuda Indonesia.

They also sought a Rp 1 billion (US$61,200) fine and $86 million in restitution of state losses, Antara reported.

The KPK charged Emirsyah with violating Article 2 (1) of the 2001 Corruption Law, which prohibits personal or corporate enrichment through losses incurred to the state.

Prosecutors allege Emirsyah handed over the state-owned enterprise’s confidential aircraft procurement plan to Soetikno Soedarjo, who later gave the plan to Canadian aircraft manufacturer Bombardier.

The KPK also indicted Emirsyah on charges related to altering the aircraft capacity in the procurement plan from 70 to 90 seats without informing other Garuda board members. It further alleged Emirsyah ordered his subordinates to change the aircraft specifications in the procurement plan without board authorization.

Emirsyah allegedly conspired with Soetikno, former president director of diversified retail holding company PT Mugi Rekso Abadi who also served as commercial advisor for Bombardier and France-based aircraft manufacturer ATR, so that the two companies were granted the winning bid on procuring new aircraft for Garuda’s fleet.

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The state-owned airline eventually purchased Bombardier CRJ-1000 and ATR 72-600 planes, though these did not meet Garuda’s business requirements as a full service airline, reportedly causing $609 million in state losses.

Read also: KPK files reports on justice’s acquittal in Supreme Court corruption case

At a separate hearing on Thursday, prosecutors sought a sentence for coconspirator Soetikno comprising six years in prison, a fine of Rp 1 billion and restitution of $1.7 million and 4.3 million euros for his role in the underhanded procurement deal.

The graft trial over the procurement deal is the second for Emirsyah.

In 2019, he was charged with corruption for accepting multiple bribes totaling Rp 49.3 billion during his tenure as Garuda president director from 2005 to 2014. The KPK also accused him of laundering Rp 87.4 billion through multiple channels.

Emirsyah’s indictment came three years after the antigraft body issued in January 2017 Sprindik, the investigation authorization letter.

Over three years later in May 2020, the corruption court found him guilty of bribery and money laundering and sentenced him to eight years in prison, a lighter punishment than the 12-year prison term the KPK prosecutors had sought.

Soetikno was also tried and convicted in connection with the same graft case, and the court handed down six years in prison for bribing and abetting Emirsyah in money laundering.

This sentence was also lighter than the 10 years and restitution of $14.7 million and 11.6 million euros prosecutors had demanded for Soetikno. (kuk)

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