Indonesia’s financial regulator (OJK) and stock exchange has ordered Garuda Indonesia to “repair and restate” its annual accounts – this has in turn sent the airline’s shares tumbling 7.6%, its lowest level since January.
The news comes just weeks after its two biggest private shareholders alleged it had misrepresented a $240 million transaction.
OJK has ordered Garuda Indonesia to fix unspecified errors in its 2018 annual accounts and submit a corrected version within 14 days. It has subsequently fined each of the airline’s directors Rp100m ($7,083).
According to a report from Reuters, the companies published a letter saying they had taken issue with the way the airline had forward-booked earnings from a deal with a technology provider in October 2018, saying it should have shown an additional $240 million loss.
The allegations were denied at the time by the airline’s chief financial officer Fuad Rizal. Garuda posted $5.02 million net profit on $4.37 billion of revenues in its 2018 annual report.
This figure is now under scrutiny.