KPK Reminds Procurement Of New Garuda Indonesia Aircraft Must Be Transparent

KPK Chairman Setyo Budiyanto during a hearing with high-ranking Garuda Indonesia (DOK Wardhany Tsa Tsia/VOI)

JAKARTA - The Corruption Eradication Commission (KPK) reminded PT Garuda Indonesia (Persero) Tbk to be transparent regarding the procurement of new aircraft in collaboration with Boeing.

Do not let the alleged corruption that has occurred in the state-owned company be repeated.

This was conveyed by KPK Chairman Setyo Budiyanto during a hearing with high-ranking Garuda Indonesia officials at the KPK's Red and White building, Kuningan Persada, South Jakarta, Wednesday, October 1.

"We have to make sure we don't repeat the mistakes," said Setyo in an official statement from the institution, Thursday, October 2.

Garuda Indonesia's negotiations with Boeing, which is an aircraft manufacturer from the United States, are known to produce several purchase options. The transaction value reaches 8.03 billion US dollars and is accompanied by changes to old contracts (PA 2158), deposit schemes to the risk of creditors' demands.

"Procurement of this size must be transparent, accountable, and free of conflicts of interest," said Setyo.

Complementing Setyo, Deputy Chairperson of the KPK Agus Joko Pramono said there are a number of risks in large-value procurement such as price games, specification manipulation, conflicts of interest, to potential gratification. Thus, the anti-corruption commission will carry out layered monitoring so that every step is in accordance with the rules.

Similarly, the Deputy Chairperson of the KPK, Ibnu Basuki Widodo, also emphasized the dangers of conflict of interest that could weaken the independence of decision makers.

"A clear legal umbrella and risk mitigation recommendations so that transactions do not end in problems in the future," he said.

Various KPK warnings will be carried out by the directors of Garuda Indonesia. Garuda Indonesia's President Director, Tsani Panjaitan, ensured that his party was committed to carrying out all business processes according to the rules.

"We make sure that every rupiah in this procurement is managed responsibly. The presence of the KPK strengthens our commitment to integrity," he concluded.