Sanctioned, Garuda Indonesia Stock Plummets

PT Garuda Indonesia (Persero) Tbk's stock price, with the company code GIAA, closed down 7.58% to Rp 366 per share on Friday (28/6). The previous day, Garuda's stock had strengthened to Rp 396 per share after five consecutive days in the red.

Senior Vice President of Royal Investium Sekuritas, Janson Nasrial, explained that the movement of Garuda's stock was influenced by the decision of the Financial Services Authority (OJK), the Ministry of Finance (Kemenkeu), and the Indonesia Stock Exchange (BEI) which stated that Garuda's financial statements did not comply with applicable accounting standards. The OJK and BEI ordered Garuda to resubmit its financial statements and hold a public explanation within the next two weeks.

The OJK also imposed an administrative sanction in the form of a Rp 100 million fine on Garuda for violating OJK Regulation Number 29/POJK.O4/2016 concerning the Annual Report of Issuers or Public Companies. In addition, all members of Garuda's Board of Directors who signed the financial statements were also fined Rp 100 million each. The BEI also imposed a sanction of Rp 250 million for the violation of the presentation of the Company's First Quarter 2019 Financial Report.

(Read Databoks: [Garuda's Performance Pressured by Soaring Operating Costs](https://databoks.katadata.co.id/datapublish/2019/06/28/kinerja-garuda-tertekan-lonjakan-beban-usaha))