INSURANCE FRAUD

Garuda Indonesia’s prettiest financial statement

AGFI RESIANA CENDANI (1832510679)
MERRY HIDAYATI (1832510687)
RIZKA NURFIKRIYAH M (1832510661
Background of the Problem

In the year 2018 the Corruption Eradication Commission (KPK) revealed

the cause of Garuda Indonesia is often lost annually due to the mark up that
occurred during the purchase of an aircraft engine from a British company,
namely Rolls-Royce.
However, in fact the company buys the item at a price that is deliberately
raised then the result of the mark up goes into a personal account. The
former president director of Garuda Indonesia Emirsyah Satar and director
of PT. Mugi Rekso Abadi (MRA) Soetikno Soedarjo are involved in the
alleged corruption.
WINDOW DRESSING

Garuda Indonesia company is doing Window Dressing. This is complicated

by the financial statements of Garuda Indonesia in 2018 for the Indonesia
Stock Exchange (IDX).
Window Dressing is a term used in the accounting practices using
accounting tricks to make the company's balance sheet or related income
statement look better than the previous year. Window dressing are usually
done by setting an asset or income too high, or setting an obligation or
burden is too low in the financial statements so that the company earns a
higher profit.
FINANCIAL PERFORMANCE

Garuda Indonesia's financial performance has been a return discussion since

Garuda Indonesia publishes its financial performance in 2018 to the
Indonesia Stock Exchange. In the year 2018 Garuda Indonesia generate net
profit of US $809 thousand, compared to the upside-down in 2017 in the
year of RP 216,58 million. Considerable performance raises the question
because in the third quarter 2018 Garuda Indonesia is still a loss of US
$114,08 million. This is due to the transaction of PT. Mahata Aero
Technology worth US $239,94 million which is listed as revenue so it
affects the balance sheet of PT. Garuda Indonesia Tbk,.
CHAIRUL TANJUNG AND DONY OSKARIA REFUSED ANNUAL
BOOK REPORT GARUDA INDONESIA

When the annual general meeting of Shareholders (AGMS) Chairul Tanjung and Dony Oskaria refused to sign the
2018 Garuda annual book report. Because the cooperation agreement between PT Mahata Aero technology and
Garuda Indonesia Group on October 31, 2018 is not suitable. The contract of cooperation between Garuda and
Mahata worth US $239,94 million which is valid for the next 15 years, but has been booked in the first year, and
entered into other income. The problem is that there is no payment coming from PT Mahata Aero technology until the
end of 2018. If the cooperation is not listed as an income, the company is still losing US $244,96 million.
FACT ABOUT CHANGE OF TRANSACTION
VALUE OF PT MAHATA AERO TECHNOLOGY
The value of transactions turned out to be lower.
The changes were seen in the disclosure of information made by
Garuda Management on 4 April, where the value of transactions with
Mahata was recorded at US $172,94 million. That is, within 4 months the
value of transactions with Mahata is shrinking to US $67 million. Or
sekitarRp 948.2 billion, compared with the first version in December 2018
(worth US $239.94 million). Almost a difference of Rp 1 trillion, thus
raising questions about the accountability and reliability of the transaction
to be recorded as income
2015-2018
 THE GROWING EVIL OF
CORRUPTION IS OFTEN
OUR OWN INDIFFERENCE THANK YOU
“Bess Myerson”