Corporate Governance & Risk Management Course

Undergraduate Program
University of Indonesia
Faculty of Economics & Business

Case
a. The Effectiveness and composition of the Board of Commissioners (BOC)
b. Remuneration system of the Board members
c. Performance evaluation of the BOC, BOD and board members
d. Audit Committee Effectiveness
PT Garuda Indonesia Tbk (Prelude to the Restatement of Financial Statements 2018)
(Note: The analysis of the case is based on the conditions of Garuda before the restatement
of its 2018 Financial Statements)

The coverage of the paper and presentation shall at least cover the following topics:
1. Explanation on the background of Garuda (Business operation, composition of
shareholders, including the identities of large shareholders).
2. The chronology of a. events leading to the restatement of the 2017 audited financial
statements (including the changes in members of BOC and BOD, members of audit committee, the
external auditor, the BOC and BOD statement on the fairness of the financial statements, the
General Meeting of Shareholders held in 2019, b. events following the restatement, including the
sanctions given to responsible parties).
3. Explanation and analysis on the composition of the BOC and the qualification of its
members of BOC, including the chairman of audit committee.
4. Explanation and analysis on the composition of the Audit Committee and the qualification
of its members.
5. Explanation and analysis on the execution of the BOC’s tasks with regard to the oversight
on the quality of financial statements of Garuda.
6. Explanation and analysis on the execution of the Audit Committee’s tasks with regard to
the oversight on the quality of financial statements of Garuda, the appointment of the
external auditor as well as the oversight on the audit conducted by the external auditor.
7. Explanation and analysis on the performance evaluation of the BOC, the BOD and their
members.
8. Explanation and analysis on the remuneration system of members of BOC and BOD.
9. Conclusion, including recommendation on improvement needed in Garuda to assure the
quality of financial statements.

Hints:
- Please carefully read the relevant reading materials, including relevant regulations/rules before
addressing the assigned topics.
- For topics three to eight, analyze if policies and actual practices in Garuda are in line with CG
principles, recommendation, guidance (in G20/OECD CG Principles and PUGKI) and relevant
regulations/rules.
- For topic nine, recommendations are based on the analysis in point three to eight.