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Finance Ministry, OJK slap Garuda with fine following 'incorrect' financial statement
The government also punished Garuda's auditor by freezing his auditing permit for 12 months.
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A Garuda Indonesia airplane parks at Terminal 3 of Soekarno-Hatta International Airport in Tangerang, Banten on Tuesday. (JP/Wienda Parwitasari)
T
he government has decided that state-owned airline PT Garuda Indonesia must restate its 2018 financial statement and annual report.
The decision was announced on Friday following a joint investigation by the Finance Ministry and the Financial Services Authority (OJK), which found that Garuda published an incorrect financial statement report that did not comply with current accounting standards.
Read also: Garuda asked to restate 2018 financial report for the sake of 'credibility'
Moreover, OJK deputy commissioner for capital market monitoring division Fakhri Hilmi said the firm also did not mention the fact that two of its commissioners had refused to sign the 2018 annual report, signaling that they refused to accept the facts stated in the report.
As a result, Garuda must resubmit its 2018 financial statement and annual report in the next 14 days. The company has also been slapped with a fine of Rp 100 million (US$7,080).
Read also: Audit agency finds alleged violation in Garuda Indonesia financial report
The fine, he said, was also applied to each member of the board of directors that signed the annual report, along with a collective fine of the same amount to the members of the board of directors and the commissioners that signed the report.
