Garuda Indonesia under spotlight again for reportedly misusing CSR funds

Garuda Indonesia is once again under scrutiny for allegedly embezzling its CSR funds. According to The Jakarta Post, the State-Owned Enterprises (SOE) Ministry reportedly received a report claiming the airline misused the CSR funds by transferring them to the Garuda Indonesia Cabin Crew Union (IKAGI).

Quoting Arya Sinulingga, SOE Minister Erick Thohir's aide, The Jakarta Post said the ministry and its committee of auditors are currently confirming the report, which reportedly included a receipt of US$3,572. Sinulingga added that it will question Garuda on the portion of funds that was allegedly transferred to IKAGI, and the purpose of the transfer. Sinulingga also said that CSR funds are not for internal use and should go to external projects instead.

However, he said that this is not a legal matter as the funds were "given to the wrong recipient" rather than being set aside for personal use, The Jakarta Post said. Sinulingga added that those involved could possibly face administrative sanctions. Marketing Interactive has reached out to Garuda for comment.

This news comes shortly after it was reported that the airline's CEO Gusti Ngurah Askhara Danadiputra will be fired for attempting to smuggle a classic 1972 Harley-Davidson motorcycle on a flight. Quoting Finance Minister Sri Mulyani Indrawati, media reports including The Straits Times and Bloomberg said that the undeclared Harley Shovelhead and two high-end Brompton folding bikes “deprived the country” of about IDR500k to IDR1.5 billion in customs duties for luxury items.

Following the news, the airline said it will be reviewing its business practices and human resources policies. Garuda’s acting president director Fuad Rizal said minister Erick informed the airline management to “maintain moral standards and operations” until a shareholders meeting is carried out, according to The Jakarta Post.