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Jakarta Post

Two commissioners object to Garuda's 2018 financial report

Two commissioners object to Garuda's 2018 financial report An aircraft bearing the Garuda Indonesia livery soars among the clouds. ( X p o s e)
News Desk
Jakarta   ●   Thu, April 25, 2019 2019-04-25 11:09 752 db1d47cf6ffbed4060cffaa8734c19ad 4 Business Garuda-Indonesia,commissioner,financial-report,rejection Free

Two Garuda Indonesia commissioners have objected to the flag carrier’s 2018 financial report, saying that the report did not meet the accountancy standard for including potentially misleading items.

Commissioners Chairal Tanjung and Dony Oskaria rejected Garuda's financial report in a letter dated April 2, reported on Wednesday.

“There is no problem [with our objection], as the vote was taken and [the shareholders] approved [it],” Chairal said in Jakarta on Wednesday.

The airline's shareholders accepted the financial report with the two commissioners' dissenting opinion.

The commissioners objected to the inclusion of revenue from a cooperation agreement with PT Mahata Aero Teknologi and revenue and receivables from PT Sriwijaya Air in the 2018 fiscal year.

Garuda's financial report to the Indonesia Stock Exchange (IDX) on April 1 recorded a net profit of US$809,846 in 2018, compared to a loss of $64.2 billion in 2017.

The two commissioners argued in the letter that, without the inclusion of receivables from Sriwijaya Air and revenue from Mahata, the airline still recorded losses of $244.96 million in 2018.

They said the financial report could be misleading because it had changed the company's financial position from loss to profit. As a result, Garuda had to pay more income tax and value-added tax that could burden its cashflow.

Meanwhile, PT Citilink Indonesia, a Garuda subsidiary, said the low-cost carrier had installed inflight connectivity services under the cooperation agreement it established with PT Mahata Aero Teknologi on Oct. 31, 2018.  

“We have installed connectivity infrastructure on one aircraft. This year, we plan to install [the service] in eight aircraft,” said Citilink president director Juliandra.

Meanwhile, undersecretary for financial services, survey and consultation Gatot Triharjo at the State-Owned Enterprises Ministry said that the dissenting opinion the two Garuda commissioners had lodged was in accordance with their supervisory capacity. (bbn)