Garuda Indonesia Share Plunges 7.6 percent

TEMPO.CO, Jakarta - The share price of Garuda Indonesia (GIAA) was corrected deep following news of the airline's financial report problems. On Thursday, GIAA closed at Rp462 per share, down 7.6 percent from the previous day's trade.

"The financial report issue was one of the negative sentiments causing the share price decline. Investors' concerns prompted the market to sell," OSO Securities research analyst Sukarno Alatas told Tempo on Thursday, April 25.

Garuda's shareholders' general meeting resulted in a dissenting opinion regarding the airline's 2018 financial statement.

Two commissioners, Chairul Tanjung and Dony Oskaria—representing Trans Airways and Finegold Resources Ltd.—refused to sign and approve the statement.

Both men have 28.08 percent ownership in Garuda.

Chairul and Dony objected to the report's statement regarding an agreement between Garuda subsidiary Citilink and Mahata Aero Teknologi. Mahata is signed to install in-flight entertainment and connectivity on board the plane.

The financial statement included the record of a US$239.94 million revenue in accounts receivable from Mahata. Chairul and Dony said that particular booking is a violation to the state accounting laws (PSAK), which is denied by Garuda's director of finances and risk management, Fuad Rizal.

In its 2018 financial statement, Garuda Indonesia reported a profit of US$809.84 million, a major improvement from 2017's US$216.58 million financial loss.

FRANCISCA CHRISTY ROSANA | BISNIS

Read: IDX Questions Garuda Indonesia Directors on Finance Report