Garuda Settles Cartel Case with Australian Commission; Agrees to Pay Fine

TEMPO.CO, Jakarta - Flagship carrier Garuda Indonesia agrees to settle things with the Australian Competition and Consumer Commission (ACCC) over the fuel surcharge cargo cartel case. The settlement was ratified by the Federal Court of New South Wales, Australia, on the case registered as number NSD955/2009.

The information is written in Garuda Indonesia's disclosure report to the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX), sent on 19 April 2021.

It is written that Garuda is required to pay fines and fees for the ACCC case through a five-year installment mechanism, starting December 2021.

Garuda Indonesia CEO Irfaniaputra said that his company will obey the court's decision according to the contents of the agreement. "Yes, we are committed," Irfan told Tempo on Monday, April 19.

Irfan was unwilling to disclose the value of the fine. Meanwhile, according to the Federal New South Wales ruling, the company will implement the contents of the agreement and withdraw the appeal.

"Based on the verdict, there are no other sanctions imposed on the company," the disclosure report also stated.

The ACCC had filed a lawsuit against Garuda and 13 other international airlines for alleged involvement in cartel practice from 2002 to 2006.

In May 2019, Garuda was ordered to pay a fine of Au$19 million (approximately Rp190 billion) by the Australian Federal Court for allegedly fixing cargo shipments.

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FRANCISCA CHRISTY ROSANA | BISNIS