Financial Report

Two commissioners object to Garuda's 2018 financial report

They have objected to the flag carrier’s 2018 financial report, saying that

the report did not meet the accountancy standard for including potentially misleading items.

Commissioners Chairal Tanjung and Dony Oskaria rejected Garuda's financial report in a letter dated April 2.
“There is no problem [with our objection], as

the vote was taken and [the shareholders] approved [it],”

The airline's shareholders accepted the financial report with the two commissioners' dissenting opinion.

The commissioners objected to the inclusion of revenue from 

a cooperation agreement with PT Mahata Aero Teknologi and revenue and receivables from PT Sriwijaya Air in the 2018 fiscal year.

Garuda's financial report to the Indonesia Stock Exchange (IDX) on April 1 recorded a net profit of US$809,846 in 2018, compared to a loss of $64.2 billion in 2017.

The two commissioners argued in the letter that,

without the inclusion of receivables from Sriwijaya Air and revenue from Mahata, the airline still recorded losses of $244.96 million in 2018.

The financial report could be misleading because

it had changed the company's financial position from loss to profit.

As a result, Garuda had to pay more income tax and value-added tax that

That payment could burden its cashflow.

the dissenting opinion the two Garuda commissioners had lodged was in accordance with their supervisory capacity.