Thursday, 21 November 2019

BPKP Set to Audit Garuda Indonesia - Sriwijaya Air Partnership

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Laila Afifa

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  • TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi said that the financial and development supervisory body (BPKP) is set to evaluate the business partnership between state-flag carrier Garuda Indonesia and Sriwijaya Air. 

    “We will come up with a decision and establish provisions with that as our basis,” said Budi at the Maritime Affairs Coordinating Ministry on Thursday, November 7. The evaluation process will take one week. 

    He said the reason of BPKP’s involvement is mainly due to certain valuations, such as business shares and company restructuring, that must be conducted within the realm of the body’s authority.

    Sriwijaya Air attorney, Yusril Ihza Mahendra, also said that BPKP’s involvement was due to the contrasting statements between the two business entities regarding debts. According to Yusril, his clients deemed that Sriwijaya’s debts to Garuda Indonesia skyrocketed as the partnership was established. 

    Meanwhile, Garuda management stated that debt has fallen 18 percent. This has forced both air carriers to agree on being audited by the BPKP. 

    “The continuation of the partnership will be determined by the report, whether debts have dropped or risen,” said Yusril. 

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