Business Ethics and

Corporate Governance Course

Case Study of Garuda Indonesia

Lecturer Internal Control Group

Taufiqurrahman., M.Sc., M.Phil Raisya Hamidah S. - 2002134858
Rio Septiawan - 2002112100
 Table of Content

A. Background of Case Study

B. Objectives

C. Findings and Discussion

D. Conclusion + Suggestions
 A. Background of Case Study

• This case study was about a transnational crime of the Garuda

Indonesia and Rolls - Royce's corruption

• Former Chief Director of Garuda, Emirsyah Satar, was alleged in the

bribery case of aircraft and aircraft engine procurement from Airbus
SAS and Rolls Royce PLC by PT. Garuda with Soetikno Soedarjo as
the intermediary.

• This case was based in Indonesia.

 B. Objectives

The objectives of this study are:

• To find out how they violated business ethics

• To find out how the problem was solved

• To find out how the perpetrators were punished

 C. Findings and Discussion

• PT. Garuda (GIAA) sued Rolls Royce PLC and Rolls Royce Total Care
Service Limited on September 13th 2018

• These two companies were accused of cheating on the agreement

with Garuda. This was the origin of corruption that involves the
former Chief Director of Garuda Emirsyah Satar.
 C. Findings and Discussion

• Emirsyah is suspected of receiving bribes from a British engine

company, Rolls Royce, in the form of money and goods given through
Soetikno as an intermediary. The bribe was given by Rolls Royce to
the Emir in the project to procure 50 Airbus A330-300 aircraft
engines for Garuda Indonesia in the 2004-2015 period
 C. Findings and Discussion

• Cases of crimes committed by Garuda Indonesia and Rolls Royce are

included in transnational crimes which are closely related to unfair
business competition which causes obstacles to the opening of global
markets and other joints of business.
 C. Findings and Discussion

• Rolls-Royce admitted that it had committed bribery on a large scale

with several overseas governments across three continents. The SFO
investigation found that Rolls-Royce committed bribery in several
countries, including Indonesia, Thailand, India, Nigeria, Malaysia,
China, and Russia between 1989 and 2013.
 D. Conclusion + Suggestions

• Steps to strengthen the work of the Indonesian Commission on

Corruption Eradication (KPK-RI) through strengthening authority
and cooperation between countries is needed to eradicate
transnational corruption carried out by multinational corporations,
such as Rolls-Royce.
 D. Conclusion + Suggestions

• Both parties have gone through mediation to achieve the peace which
was then followed up with the signing of the Peace Agreement on
August 12, 2021
 D. Conclusion + Suggestions

• Indonesia must adapt to the development of different, sophisticated,

and complex types of corruption that are so sophisticated and
complex.

• Both companies must monitor what their superiors are doing more
tightly to prevent case like this happens in the future

• Multinational companies are expected to be able to make good

corporate governance by establishing an internal control system for
the company itself
Thank You