{"id":62103,"date":"2022-02-28T09:42:38","date_gmt":"2022-02-28T09:42:38","guid":{"rendered":"https:\/\/pr.asianetpakistan.com\/?p=87449"},"modified":"2022-02-28T09:42:38","modified_gmt":"2022-02-28T09:42:38","slug":"eradicating-corruption-within-soes","status":"publish","type":"post","link":"https:\/\/kuwaitnewsgazette.com\/eradicating-corruption-within-soes\/","title":{"rendered":"Eradicating Corruption Within SOEs"},"content":{"rendered":"
\n

JAKARTA, Indonesia, Feb. 28, 2022 \/PRNewswire\/ —\u00a0In October 2021, former Garuda Indonesia commissioner Peter Ghonta took the lid\u00a0off various problems brewing in the company.<\/p>\n<\/div>\n

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Gontha urged the State-Owned Enterprises (SOEs) Ministry to dismantle past\u00a0cases of alleged corruption in the company related to aircraft leasing.<\/p>\n

He cited issues related to powerful groups in the company and the price\u00a0difference between Boeing 777-300ER aircraft rental and CRJ1000 aircraft\u00a0purchase.<\/p>\n

Ghonta spoke of having reported the problems to several institutions ranging\u00a0from the director-general of the Ministry of Law and Human Rights to the\u00a0chairman of the Corruption Eradication Commission (KPK).<\/p>\n

State-Owned Enterprises (SOEs) Minister Erick Thohir then filed a report on an\u00a0alleged graft case in the financially beleaguered state-owned airline PT Garuda\u00a0Indonesia (Persero) to the Attorney General’s Office.<\/p>\n

The report outlines the government’s plan to restructure Garuda Indonesia as\u00a0well as provides evidence regarding the procurement of ATR 72-600 aircraft.<\/p>\n

We provide evidence from the investigative audit, so it is not an accusation,\u00a0he asserted.<\/p>\n

For the past two years, Garuda Indonesia had faced a financial storm due to\u00a0past mismanagement that caused the company’s debt to swell to more than Rp140\u00a0trillion, Thohir remarked.<\/p>\n

Meanwhile, Thohir noted that the Garuda Indonesia case was not just about an\u00a0aircraft but pertaining to an ecosystem.<\/p>\n

He encouraged the Garuda Indonesia case to be resolved, as it was impossible to\u00a0buy or rent an aircraft without a business plan and without calculating flight\u00a0routes.<\/p>\n

In the absence of such a calculation, Garuda ultimately paid the aircraft\u00a0rental fee of up to 28 percent to the lessor as compared to only eight percent\u00a0to other airlines’ aircraft lessors.<\/p>\n

“Hence, there is a system and there is a solution, so that in the future,\u00a0Garuda will not repeat similar cases again since due to no management, the loss\u00a0will also affect the people, in the form of expensive tickets,” he pointed out.<\/p>\n

In addition, the SOEs Ministry has taken steps to restructure and salvage the\u00a0state-owned airline.<\/p>\n

The ministry will focus on transforming the airline to make it more accountable, professional, and transparent.<\/p>\n

More than 470 creditors have submitted claims of up to US$13.8 billion, or\u00a0equivalent to Rp198 trillion, to Garuda Indonesia as of January 5, 2022, as part of a debt recast.<\/p>\n

The figure has been cited by Garuda Indonesia’s Suspension Debt Payment\u00a0Obligation (PKPU) team, Thohir remarked.<\/p>\n

After the verification is completed, the PKPU team will take a decision on January 19, 2022, regarding the amount considered to be valid and can be\u00a0included in the restructuring process, he remarked.<\/p>\n

The Garuda management had earlier submitted a proposal to reduce its\u00a0liabilities by more than 60 percent, from US$9.8 billion to US$3.7 billion\u00a0through restructuring.<\/p>\n

The proposal aimed to help the company survive amid the COVID-19 pandemic that\u00a0has protracted for two years.<\/p>\n

Save Garuda<\/p>\n

Commission VI of the Indonesian House of Representatives formed a working\u00a0committee to rescue national carrier Garuda Indonesia.<\/p>\n

“In principle, the Committee for Rescuing Garuda is a follow-up to the three\u00a0work meetings undertaken by Commission VI with the SOEs minister, deputy\u00a0ministers, and the Garuda Indonesia Board of Directors,” Head of the Committee\u00a0for Rescuing Garuda Martin Manurung stated.<\/p>\n

Manurung explained that the working committee will work not only to look for\u00a0management issues within the state-owned airline but also to explore options\u00a0offered by the government.<\/p>\n

The deputy chairman of Commission VI stated that the formation of the working\u00a0committee was also a form of political support for Commission VI of the\u00a0Indonesian House of Representatives for Garuda Indonesia to stay afloat.<\/p>\n

“We want Garuda Indonesia, as a national flag carrier, to be able to stay in\u00a0the air, to be able to fly, as an airline of national pride,” Manurung noted.<\/p>\n

Meanwhile, State-Owned Enterprises Minister Erick Thohir expressed support for\u00a0the establishment of a working committee by Commission VI of the House of\u00a0Representatives (DPR RI) to rescue and reform national carrier Garuda Indonesia.<\/p>\n

Establishment of the working committee is proof of DPR RI’s concrete support\u00a0and commitment to monitoring the state-owned airline’s rejuvenation process,\u00a0the minister noted.<\/p>\n

The political support that the legislature has exhibited would be key to\u00a0rescuing the flag carrier, the minister noted while adding that his ministry is\u00a0committed to cooperating with the parliament’s working committee for seeking\u00a0solutions to remedy issues that have plagued the national airline.<\/p>\n

The ministry will also inform the working committee, which will monitor the\u00a0airline’s restructuring and reform progress, about Garuda Indonesia’s future\u00a0business and reform plan, he added.<\/p>\n

The State-Owned Enterprises Ministry cannot rescue the airline alone, and we\u00a0need to collaborate with relevant stakeholders, including DPR RI’s Commission\u00a0VI, in mending Garuda Indonesia, Thohir remarked.<\/p>\n

Transforming Garuda Indonesia is a must to ensure the flag carrier survives\u00a0amid the economic uncertainty posed by the COVID-19 pandemic and to ascertain\u00a0that it records positive performance after the pandemic, he noted.<\/p>\n

The ministry has also collaborated with the Attorney General’s Office to\u00a0investigate allegations of corruption by the airline management in the past,\u00a0the state firm minister remarked.<\/p>\n

Thorough reforms in the law enforcement and business aspects are expected to\u00a0bolster Garuda Indonesia’s performance to become more accountable,\u00a0professional, and transparent in the future, Thohir affirmed.<\/p>\n

Jiwasraya, Pension Fund<\/p>\n

Efforts to eradicate corruption by the minister are also being made in the\u00a0insurance business sector.<\/p>\n

Thohir revealed that the completion of Jiwasraya’s mega scandal case provided a\u00a0solution for the aggrieved parties.<\/p>\n

“However, what distinguishes us from other corruption cases is that the\u00a0Jiwasraya case has a solution for those who were harmed. It is not a pending\u00a0case for which there is no explanation. Those who were harmed will be\u00a0recompensated for their losses,” Thohir stated.<\/p>\n

The minister drew attention to no solution being found to this day in several\u00a0cases of corruption in pension funds and insurance. No refund was offered to\u00a0the cheated parties.<\/p>\n

For instance, the case of illegal online loans where no perpetrators or\u00a0masterminds had yet been revealed and no refund was provided to the victims and\u00a0deceived parties.<\/p>\n

Thohir affirmed that the collaboration was necessary to solve the Jiwasraya\u00a0case.<\/p>\n

President Joko Widodo gave directions that the Jiwasraya case should be solved\u00a0immediately.<\/p>\n

After looking at the facts and evidence, an audit investigation from the\u00a0Development Finance Comptroller (BPKP) and a report from the Supreme Audit\u00a0Agency (BPK), the Ministry of SOEs officially reported the Jiwasraya case to\u00a0the Attorney General’s Office.<\/p>\n

“The Ministry of SOEs does not want to become trapped in legal problems, and it\u00a0focuses on corporate issues,” the minister stated.<\/p>\n

In addition, Thohir will fix pension funds in state-owned enterprises\u00a0comprehensively this year.<\/p>\n

The pension fund has become a breeding ground for corruption, with the\u00a0pensioners’ bills not being paid in the end, he pointed out.<\/p>\n

To this end, the minister of SOEs urged Commission VI of the Indonesian House\u00a0of Representatives to jointly conduct a focus group discussion on exposure\u00a0regarding pension funds.<\/p>\n

“We are ready, but we cannot clean it up right away, as there is a binding law.\u00a0Hence, the Ministry of SOEs cannot intervene,” Thohir noted.<\/p>\n

Meanwhile, he remarked that comprehensive improvement in pension funds in the\u00a0state firm became one of the SOE Ministry’s programs in 2022.<\/p>\n

The existence of state-owned companies aims to provide the greatest profits to\u00a0the state.<\/p>\n

Thereafter, the profits will be channeled back through various programs for the\u00a0people, starting from infrastructure development to welfare improvement, and\u00a0others.<\/p>\n

There is no place for corruption within SOEs.<\/p>\n

The accountability, transparency, and anti-graft approaches must continue to be\u00a0implemented to build prosperous SOEs.<\/p>\n<\/div>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

JAKARTA, Indonesia, Feb. 28, 2022 \/PRNewswire\/ \u2014\u00a0In October 2021, former Garuda Indonesia commissioner Peter Ghonta took the lid\u00a0off various problems brewing in the company. Gontha urged the State-Owned Enterprises (SOEs) Ministry to dismantle past\u00a0cases of alleged corruption in the company related to aircraft leasing. He cited issues related to powerful groups in the company and [\u2026]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"yoast_head":"\nEradicating Corruption Within SOEs - Kuwait News Gazette<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuwaitnewsgazette.com\/eradicating-corruption-within-soes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eradicating Corruption Within SOEs - Kuwait News Gazette\" \/>\n<meta property=\"og:description\" content=\"JAKARTA, Indonesia, Feb. 28, 2022 \/PRNewswire\/ \u2014\u00a0In October 2021, former Garuda Indonesia commissioner Peter Ghonta took the lid\u00a0off various problems brewing in the company. 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