Eradicate corruption within public enterprises
Jakarta, Indonesia, February 28, 2022 /PRNewswire/ — In October 2021former Garuda Indonesia commissioner Peter Ghonta resolved various simmering issues in the company.
Gontha urged the Department of State Enterprises (SOE) to dismantle previous cases of alleged corruption within the company related to aircraft leasing.
He cited issues with the company’s power groups and the price difference between leasing Boeing 777-300ER planes and buying CRJ1000 planes.
Ghonta said he reported the issues to several institutions ranging from the director general of the Ministry of Justice and Human Rights to the chairman of the Corruption Eradication Commission (KPK).
Minister of Public Enterprises (EP) Eric Thohir then filed a report on an alleged corruption case at financially troubled state-owned airline PT Garuda Indonesia (Persero) with the attorney general’s office.
The report outlines the government’s plan to restructure Garuda Indonesia and provides evidence regarding the purchase of ATR 72-600 aircraft.
We provide evidence from the investigative audit, so it’s not an accusation, he claimed.
Over the past two years, Garuda Indonesia has faced a financial storm due to past mismanagement that has ballooned the company’s debt to over 140 trillion rupees, Thohir noted.
Meanwhile, Thohir noted that the Garuda Indonesia case was not just about an aircraft, but about an ecosystem.
He encouraged the settlement of the Garuda Indonesia case, as it was impossible to buy or lease an aircraft without a business plan and calculating flight routes.
In the absence of such a calculation, Garuda ultimately paid aircraft lease fees of up to 28% to the lessor, compared to only 8% to aircraft lessors from other airlines.
“Therefore, there is a system and there is a solution, so that in the future, Garuda will not repeat similar cases because, due to lack of management, the loss will also affect people, in the form of expensive tickets” , he pointed out. outside.
Additionally, the Ministry of Public Enterprises has taken steps to restructure and rescue the state-owned airline.
The ministry will focus on transforming the airline to make it more accountable, professional and transparent.
More than 470 creditors submitted claims of up to US$13.8 billionor equivalent to Rp 198 trillionin Garuda Indonesia as of January 5, 2022as part of a debt overhaul.
The figure was cited by Garuda Indonesia’s debt payment obligation suspension (PKPU) team, Thohir noted.
After the verification is completed, the PKPU team will make a decision on January 19, 2022regarding the amount considered valid and can be included in the restructuring process, he noted.
Garuda management had previously submitted a proposal to reduce its commitments by more than 60%, from US$9.8 billion for $3.7 billion through restructuring.
The proposal was intended to help the company survive amid the two-year-long COVID-19 pandemic.
Committee VI of the Indonesian House of Representatives has formed a working committee to rescue national carrier Garuda Indonesia.
“In principle, the Garuda Rescue Committee follows the three working meetings undertaken by Commission VI with the Minister of State Enterprises, Deputy Ministers and the Board of Directors of Garuda Indonesia,” the chief said. of the Garuda Rescue Committee, Martin Manurung. .
Manurung explained that the working committee will work not only to research management issues within the state-owned airline, but also to explore options offered by the government.
The Vice Chairman of Committee VI said the formation of the working committee was also a form of political support to Committee VI of the Indonesian House of Representatives to keep Garuda Indonesia afloat.
“We want Garuda Indonesia, as a national flag carrier, to be able to stay in the air, to be able to fly, as a national pride airline,” Manurung noted.
Meanwhile, the Minister of Public Enterprises Eric Thohir expressed support for the establishment of a working committee by House of Representatives Committee VI (DPR RI) to rescue and reform national carrier Garuda Indonesia.
The establishment of the working committee is proof of the concrete support and commitment of DPR RI to monitor the process of rejuvenation of the public airline, noted the Minister.
The political support shown by the legislature would be essential to save the national airline, the minister noted while adding that his ministry is committed to cooperating with the parliament’s working committee to seek solutions to the problems that have plagued the national airline.
The ministry will also brief the working committee, which will monitor the progress of the airline’s restructuring and reform, on Garuda Indonesia’s future business and reform plan, it added.
The Ministry of State Enterprises cannot save the airline alone, and we must work together with relevant stakeholders, including DPR RI Commission VI, to fix Garuda Indonesia, Thohir noted.
Transforming Garuda Indonesia is essential to ensure the survival of the flag carrier in the economic uncertainty posed by the COVID-19 pandemic and to ensure that it registers a positive post-pandemic performance, he noted.
The ministry has also worked with the attorney general’s office to investigate allegations of corruption by airline management in the past, the state cabinet minister noted.
Thorough reforms in law enforcement and business aspects are expected to boost Garuda Indonesia’s performance to become more accountable, professional and transparent in the future, Thohir said.
Jiwasraya, Pension Fund
Efforts to root out ministerial corruption are also being made in the insurance sector.
Thohir revealed that the completion of the Jiwasraya mega scandal provided a solution for the aggrieved parties.
“However, what sets us apart from other corruption cases is that the Jiwasraya case has a solution for those who have been wronged. It is not a pending case for which there is no explanation. Those who have been wronged will be compensated for their losses,” Thohir said. declared.
The Minister drew attention to the fact that no solution has been found to date in several cases of corruption in pension funds and insurance companies. No refunds were offered to deceived parties.
For example, the case of illegal online loans where no perpetrator or mastermind has yet been revealed and no refund has been provided to victims and deceived parties.
Thohir claimed that the collaboration was necessary to solve the Jiwasraya case.
President Joko Widodo gave instructions for the Jiwasraya case to be resolved immediately.
After reviewing the facts and evidence, an audit investigation by the Comptroller of Development Finance (BPKP) and a report by the Supreme Audit Agency (BPK), the Ministry of Public Enterprises officially reported the Jiwasraya case. at the Attorney General’s office.
“The Ministry of Public Enterprises does not want to be trapped by legal issues and it is focusing on business issues,” the minister said.
In addition, Thohir will comprehensively fix public enterprise pension funds this year.
The pension fund has become a breeding ground for corruption, with pensioners’ bills ultimately going unpaid, he said.
To this end, the Minister of Public Enterprises urged Committee VI of the Indonesian House of Representatives to jointly conduct a panel discussion on pension fund exposure.
“We are ready, but we cannot clean it up right away because there is a binding law. Therefore, the Ministry of Public Enterprises cannot intervene,” Thohir noted.
Meanwhile, he noted that the overall improvement of pension funds in the state enterprise has become one of the programs of the state ministry in 2022.
The existence of public enterprises aims to provide the greatest profits to the state.
Subsequently, the profits will be reinjected into various programs for the population, ranging from infrastructure development to improving well-being, etc.
There is no place for corruption within public enterprises.
Accountability, transparency and anti-corruption approaches must continue to be implemented to build successful public enterprises.
SOURCE Ministry of Public Enterprises