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Jakarta Post

Garuda defends 2018 financial report

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Sat, June 29, 2019   /   06:48 am
Garuda defends 2018 financial report A Garuda Indonesia aircraft. ( Anansukkasem)

Flag carrier Garuda Indonesia has defended its 2018 financial report, which according to the Finance Ministry and the Financial Services Authority (OJK) contains “incorrect” financial statements.

In a press statement released on Friday, Garuda claimed that the ministry and the OJK had a different interpretation of its 2018 financial report, which has been audited by independent auditor KAP Tanubrata Sutanto Tanubrata Fahmi Bambang & Rekan.

The press statement stressed there was no intervention in the auditing of the 2018 financial report by Garuda Indonesia’s boards of directors and commissioners.

The airline said the inclusion of its transaction with PT Mahata Aero Teknologi, the firm that provided onboard wifi and inflight entertainment to its subsidiaries, Citilink Indonesia and Sriwijaya Air, did not violate any rules or accounting standards.

Earlier this year, two Garuda commissioners – Chairal Tanjung and Dony Oskaria – refused to sign the 2018 Garuda financial report, arguing that listing receivables from PT Mahata Aero Teknologi as revenue was against Financial Accounting Standard (PSAK) No. 23.

Garuda spokesperson Ikhsan Rosan said the airline believed in the auditor’s opinion, stressing that the 2018 report met accountancy standards and adhered to prevailing regulations.

The Finance Ministry and the OJK launched a joint investigation into the report and determined that the company presented incorrect information in its statement. The investigation also showed that the opinions of the auditor and public accounting firm Tanubrata Sutanto Fahmi Bambang and its partners (it is a member of BDO International Ltd.) were not appropriate. (bbn)