Saturday, September 30, 2023

Indonesia Pledges Support to UK's Investigation of Alleged Bribery in Garuda-Bombardier Deal

Lenny Tristia Tambun
November 6, 2020 | 4:30 pm
Garuda Indonesia's Boeing 737-800 NG sporting a mask livery as part of its campaign to stop the spread of the Covid-19 pandemic parks Soekarno Hatta International Airport last month. (JG Photo/Yudha Baskoro)
Garuda Indonesia's Boeing 737-800 NG sporting a mask livery as part of its campaign to stop the spread of the Covid-19 pandemic parks Soekarno Hatta International Airport last month. (JG Photo/Yudha Baskoro)

Jakarta. The government has promised to support the British government's investigation of Canadian aircraft manufacturer Bombardier for alleged bribery and corruption in its deal with Indonesian flag carrier Garuda Indonesia in 2012. 

"We at the [State-Owned Enterprises Ministry] are very supportive of the follow-up of legal issues at Garuda because this is part of good corporate governance and transparency that has been carried out since we took office," the State-Owned Enterprises Minister Erick Thohir told reporters in a press conference on Friday. 

The ministry would coordinate with the Corruption Eradication Commission (KPK), Law and Human Rights Ministry, and the Attorney General's Office to look into the case.

"We will continue to coordinate with law enforcement officials in handling the Garuda case," Erick said. 


"The [Law and Human Rights Ministry] will help us revise the [Garuda's] contract through mutual legal assistance," he said. 

Serious Fraud Office (SFO), a law enforcement agency in England for fraud, bribery, and corruption, has launched an investigation regarding the corruption of Bombardier and Garuda Indonesia.

"The SFO confirms it is investigating Bombardier Inc over suspected bribery and corruption in relation to contracts and/or orders from Garuda Indonesia," a statement from the office read on Thursday. 

"As this is a live investigation, the SFO can provide no further comment," the office said. 

Garuda today operates 18 Bombardier CRJ-1000 regional jets, following a deal finalized during the Singapore Airshow in February 2012. Garuda initially agreed to acquire six CRJ-1000 aircraft, with an option to take delivery of an additional 12 jets in a deal valued at $1.32 billion.

Garuda took delivery of the first Canadian-made regional jet in October 2012. Bombardier delivered its last CRJ-1000 to the airline in December 2015.

The airline said it would comply with the investigation and provide any assistance necessary for the law enforcers. 

"[W]e will respect the ongoing legal process regarding the alleged bribery of the Bombardier aircraft sales contract in 2012," Irfan Setiaputra, Garuda's president director, said in a statement on Friday. 

He hoped that Garuda's involvement in uncovering the alleged bribery and corruption would help "maintain a clean and transparent business environment" at the airline.  

In May, the Indonesian Corruption Court had sentenced Emirsyah Satar, Garuda's president director from 2005 to 2014, to 8 years in prison and a fine of Rp 1 billion for taking Rp 49 billion bribes from European airplane manufacturer Airbus, British jet engine maker Roll-Royce, Franco-Italian turboprop maker Avions de Transport Regional (ATR), and Bombardier Canada. 

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