Erick Thohir Reveals Garuda Indonesia's Problem: Buy A Plane First, Then Map The Route

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed the problems within Garuda Indonesia. According to Erick, Garuda has so far procured too many aircraft. This has also burdened Garuda's finances.

Erick said, after being investigated by the previous Garuda management, they procured aircraft without mapping out the use of the aircraft. In fact, many planes are purchased first, then the routes are searched.

"After we studied it too, many of these purchases were only buying planes. It wasn't precisely the route that was mapped, just what kind of plane was adjusted. So the plane first, then the route," Erick in an interview with one of the national TV stations, quoted from his Instagram account @erickthohir, quoted Friday, January 14th.

Erick said that Garuda Indonesia has 32 lessors. Meanwhile, other airlines only have 4 to 5 lessors. Meanwhile, in terms of aircraft types, Garuda has 13 types, while other airlines only have 3 to 4.

Furthermore, Erick said that because there were too many aircraft procurements, the company's operational burden had swelled. In fact, Garuda's aircraft rental price is the most expensive, reaching 28 percent of the company's revenue. Where the average cost of renting other airlines is only 8 percent.

"Garuda has too many types of aircraft. So, the operational method is more expensive," he explained.

Erick was asked if there was any suspicion of commissions in the procurement of these planes. He admitted it too. Therefore, his party conducted an investigative audit to obtain evidence.

"It's like that. That's why when we audit investigations, the latest ATR 72-600 has the same indication as before," he said.

Previously reported, Minister of State-Owned Enterprises (BUMN) Erick Thohir reported Garuda Indonesia's alleged corruption in the procurement of the ATR 72-600 aircraft to the Attorney General's Office.

"But what we also know is that the data is valid, indeed in the procurement of aircraft, the leasing shows indications of corruption with different brands. Especially today what the Attorney General said ATR 72-600," he said at a press conference, at the Attorney General's Office of the Republic of Indonesia, Tuesday, January 11.

Furthermore, Erick said that the report was carried out in order to clean up the state-owned company.

"I think it's time that the elements in BUMN really have to be cleaned up and this is indeed our main goal to continue to be healthy than the BUMN," he said.

Erick emphasized that the indications of corruption in the procurement of PT Garuda Indonesia Tbk aircraft, which he reported, were not based on allegations. However, it is based on investigative evidence.