Indonesia Names Ex-Garuda CEO as Suspect in Corruption Case

Emirsyah Satar

Photographer: Nicky Loh/Bloomberg

Indonesia’s anti-corruption agency named Emirsyah Satar, a former chief executive officer of state-owned PT Garuda Indonesia, as a suspect in a bribery case related to procurement of aircraft and engines.

The agency, also known as KPK, is investigating the bribery case related to purchase of about 50 aircraft and engine from Airbus SAS and Rolls-Royce Holdings Plc, Laode M. Syarif, agency’s deputy commissioner, said in a televised address. The agency also named a second suspect, identified by only initials “SS.”

The corruption case is related more to individual actions and not Garuda’s activities as a company, the airline said in a statement. Garuda is fully cooperating with KPK in its investigation, it said. Satar wasn’t immediately available for a comment on his mobile.

Rolls-Royce won approvals in the U.K. and the U.S. for settlements after it said it would pay $800 million in total to resolve bribery probes in both countries as well as Brazil. The British indictment includes the example of one individual in Indonesia receiving $2.25 million and a Rolls-Royce Silver Spirit car from the company, which has admitted to paying bribes to secure contracts in countries including Thailand, Kazakhstan, Azerbaijan, Angola and Iraq.

Indonesia’s KPK will cooperate with U.K.’s Serious Fraud Office and Singapore’s Corrupt Practices Investigation Bureau in handling the case, the agency wrote on Twitter.

Satar served as the chief executive of Garuda for a decade through 2014, overseeing a debt restructuring and an initial public offering that allowed it to expand its fleet to 134 aircraft. He’s currently the chairman of Lippo Group’s, or PT Global ECommerce Indonesia.

Satar’s performance and contribution as chairman have been very positive and “we respect the legal system and process in Indonesia,” Alvin Aulia, head of communications and partnership, said in a text message.

Garuda slid 2.3 percent to 346 rupiah at the close in Jakarta, the most since Dec. 30, while shares of PT Matahari Department Store, which holds about 10 percent stake in, rose 1.3 percent to 14,900 rupiah.

— With assistance by Herdaru Purnomo, Yoga Rusmana, and Harry Suhartono

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