Court Increases Sentence for Former Garuda CEO
A Jakarta court has significantly increased the prison sentence for Emirsyah Satar, the former chief executive of Garuda Indonesia, in a high-profile corruption case linked to the procurement of CRJ1000 and ATR72-600 aircraft. On October 28, 2024, a five-judge panel at the Jakarta High Court extended Satar’s prison term from five years to ten years, alongside a substantial increase in financial penalties.
According to Indonesia’s Kompas news outlet, the court also raised the fine imposed on Satar from IDR500 million (approximately USD31,789) to IDR1 billion (around USD63,577). In addition, Satar is required to pay a damages bill of USD86,367,019 within 30 days. Failure to do so will result in an additional eight years in prison, and he will also be responsible for covering court costs.
Satar’s legal troubles began in late June 2024, when he was initially sentenced to eight years in prison for his involvement in corrupt practices during the aircraft acquisition process. However, in late July, this sentence was reduced to five years following an appeal. A co-defendant’s conviction was also quashed at that time. The Attorney General’s Office subsequently appealed this ruling, leading to the recent decision by the Jakarta High Court.
This latest ruling marks Satar’s second conviction related to aircraft acquisitions. In 2020, he was sentenced to six years in prison for receiving kickbacks from major aircraft manufacturers Airbus and Rolls-Royce in a separate case. Satar held the position of Garuda’s CEO from March 2005 until late 2014, during which time he was implicated in multiple corrupt activities concerning aircraft procurement.
The court revealed that Satar had given co-defendant Soetikno Soedarjo, a commercial advisor working for ATR – Avions de Transport Régional and Bombardier Aerospace, access to confidential information regarding an aircraft procurement plan. Soedarjo allegedly shared this sensitive information with his clients, contributing to the corrupt practices.
Furthermore, Satar unilaterally changed the aircraft seating capacity in the procurement plan from 70 to 90 seats without consulting the board of directors. This decision led Garuda Indonesia to acquire ATR72-600s, which were operated by its subsidiary Citilink, and CRJ1000ERs—neither of which were suitable for the airline’s operational needs. As a result, Garuda Indonesia incurred substantial losses amounting to nearly USD609 million while operating these aircraft.
In light of this recent ruling, Satar’s attorney indicated that they would carefully review the full decision before determining the next steps in the legal process. This case highlights the ongoing issues of corruption within Indonesia’s aviation sector and raises questions about governance and accountability in public enterprises.
As the story unfolds, it serves as a critical reminder of the challenges facing airline executives in maintaining ethical standards and the repercussions of engaging in corrupt practices within the industry. The decision to increase Satar’s sentence reflects a broader commitment by Indonesian authorities to combat corruption and uphold the rule of law in the aviation sector.
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com