Garuda’s Shameful Scandal

KOMPAS/ALIF ICHWAN

Officers assemble the parts of a Harley-Davidson motorcycle before a press conference at the Finance Ministry in Jakarta, Thursday (5/12/2019). The press conference was used to explain the chronology of events in the smuggling of the Harley Davidson motorcycle and Brompton bicycles using Garuda Indonesia\'s new aircraft. The Customs and Excise Directorate General of the Finance Ministry uncovered the smuggling, which had been ordered by president director of PT Garuda Indonesia Tbk, I Gusti Ngurah Askhara. The contraband was smuggled on a new Airbus A330-900 Neo aircraft belonging to Garuda Indonesia.

The revelation of the smuggling of Harley-Davidson motorbike parts and Brompton bicycles, which were transported with a Garuda aircraft, is a shameful scandal.

The incident also shows how low the integrity of the officials involved in the scandal is. Referring to the Audit Committee report, which was unveiled by State Owned Enterprises Minister Erick Thohir, it was said that Garuda Indonesia president director Ari Askhara was the one who instructed the purchase of the motorcycle parts.

The motorbike was purchased in April 2019 with payment via transfer by the Garuda Indonesia finance manager in Amsterdam. The motorbike was then disassembled, put in the passenger cargo and transported by a Garuda plane that had just been bought by the national airline. The incident certainly involved many parties. A scandal that was planned and systematic by misusing the power of a president director.

We support the firm steps of the Director General of Customs and Excise, Finance Minister Sri Mulyani Indrawati and SOE Minister Erick Thohir. We also appreciate the openness of Minister Sri Mulyani who revealed relatively more detail about the financial transactions and the efforts (of the perpetrators) to scapegoat others. The public has the right to get detailed information because the issue also develops wildly on social media. The investigation must continue.

The initial step in the form of dismissal is the right step. However, the process must not only end up with dismissal. It needs a thorough investigation to clean up anyone involved in the scandal, according to the degree of error. If there is indeed a violation of criminal law, there must be due process of law.

KOMPAS/ALIF ICHWAN

Finance Minister Sri Mulyani (left) talks with State-Owned Enterprises (SOE) Minister Erick Thohir (right) during a press conference at the Finance Ministry in Jakarta on Thursday (5/12/2019). The press conference was used to explain the chronology of events in the smuggling of the Harley Davidson motorcycle and Brompton bicycles using Garuda Indonesia\'s new aircraft. The Customs and Excise Directorate General of the Finance Ministry uncovered the smuggling, which had been ordered by president director of PT Garuda Indonesia Tbk, I Gusti Ngurah Askhara. The contraband was smuggled on a new Airbus A330-900 Neo aircraft belonging to Garuda Indonesia.

A thorough investigation and disclosure of public information is important as an effort to restore the image and reputation of the national flag-carrier airline. Previously, Garuda was hit by problems relating to its financial statement. This scandal, if not managed properly, could undermine Garuda\'s reputation.

The public will of course support the steps of SOE Minister Erick Thohir to reorganize state-owned enterprises by promoting integrity and good corporate governance. Reform and reorganization at the SOE Ministry is a good first step to make SOEs more professional and with integrity. Provided that Minister Erick Thohir did not repeat the same placement pattern.

SOE governance, including reviewing the placement of directors and commissioners in SOEs, is quite important. It is common knowledge that the placement of directors and commissioners in SOEs has not been based on clear parameters. People who are considered meritorious may be placed in the ranks of BUMN commissioners.

In SOE restructuring that is currently being carried out by SOEs, the commissioners in the companies will have a big role to oversee the company\'s performance so that professionalism must be the main requirement. The integrity and corporate culture within the SOEs, including its leadership, also needs to be revitalized.