Social Mixer 2024 Singapore
marketing interactive Content360 Singapore 2024 Content360 Singapore 2024
Garuda Indonesia to review business practices post Harley-Davidson smuggling case

Garuda Indonesia to review business practices post Harley-Davidson smuggling case

share on

Indonesia's national carrier Garuda Indonesia will be reviewing its business practices, after former CEO Gusti Ngurah Askhara Danadiputra, also known as Ari Askhara, attempted to smuggle a Harley-Davidson motorcycle on a flight.

The airline management has "promised" to review its business and human resources policies, according to The Jakarta Post. In the article, Garuda’s acting president director Fuad Rizal said state-owned enterprises (SOEs) minister Erick Thohir informed the airline management to "maintain moral standards and operations" until a shareholders meeting is carried out. Marketing Interactive has reached out to Garuda Indonesia for comment.

Quoting several media outlets such as The Straits Times and Bloomberg, Askhara was also reportedly fired for smuggling a Harley Shovelhead and two high-end Brompton folding bikes. According to both media reports, Finance Minister Sri Mulyani Indrawati said that the undeclared goods “deprived the country” of about IDR500k to IDR1.5 billion in customs duties for luxury items. A recent The Jakarta Post article said that along with Ashkara, four other directors were dismissed from their positions for their alleged involvement in the smuggling.

The Harley-Davidson bike was apparently flown to Indonesia in 15 boxes, while the other two folding bikes and their accessories were kept in three separate boxes. Sri Mulyani said there were no customs declaration for the items and the flight returning to Indonesia had no cargo listed. Media reports said Sri Mulyani explained that the motorcycle was purchased in April 2019 and the amount paid was transferred to the personal bank account of Garuda’s finance manager based in Amsterdam.

Meanwhile, SOEs minister Erick Thohir said it is commencing the process to fire Ari, adding that it will look into others who might be implicated. “This is not only a civil case, but is also criminal,” he said according to media reports.

share on

Follow us on our Telegram channel for the latest updates in the marketing and advertising scene.
Follow

Free newsletter

Get the daily lowdown on Asia's top marketing stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's marketing development – for free.

subscribe now open in new window