Pertamina and Law Enforcement Agencies Uncover Subsidized Fuel Misuse
Surabaya, November 1, 2023 - Pertamina and Law Enforcement Agencies (including the Indonesian National Police, known as POLRI, and the Indonesian National Armed Forces, TNI) remain committed to collectively and independently uncovering cases related to the subsidized fuel misuse and distribution.
As of October 2023, in the Jatimbalinus region, 32 criminal cases related to subsidized fuel misuse have been successfully uncovered. POLRI independently disclosed 27 cases, and 5 of them were a result of synergy between Pertamina, TNI, and POLRI. The most common modus operandi observed involves hoarding fuel for resale at prices above the government-set rates.
Ahad Rahedi, Area Manager of Communication, Relations, and Corporate Social Responsibility (CSR), emphasized that Pertamina cannot act alone in eradicating these issues due to regulatory limitations. Pertamina's authority is limited to its distribution chain, to the smaller level, at petrol stations where operators are at the forefront. "The most dominant factor in the subsidized fuel misuse is the deviant behavior of consumers at petrol stations who do not use the fuel for their vehicles. Pertamina could not address this issue; only POLRI, based on Presidential Regulation 191/2014 on the Distribution of Subsidized Fuel, has the authority to take action due to criminal aspects within it. For this reason, we appreciate the joint efforts of TNI/POLRI in uncovering case after case, and we hope this effort spreads to other regions as well, addressing the public's concerns," Ahad said.
Ahad added that, from a regulatory standpoint, the Downstream Oil and Gas Regulatory Agency (BPH Migas) is continuously improving rules to target subsidized fuel accurately. "Solar has been tightened, non-vehicle consumers have also, focusing on the Pertalite JBKP consumption sector, the majority of which is filled with private vehicles, which we hope will also be tightened soon," he added.
The Criminal Investigation Division (Ditreskrimsus) of the East Java Regional Police uncovered Pertalite, diesel, and subsidized LPG misuse cases. The discovery from 31 police precincts led to the apprehension of 92 suspects. In a separate confirmation, Kombes Farman of Ditreskrimsus Polda Jatim explained that out of the 31 police precincts, the police received 62 reports regarding subsidized fuel misuse and LPG misappropriation.
He revealed that perpetrators often use 3-kilogram subsidized LPG to fill 12 and 50-kilogram cylinders. Further, Farman explained that the method used by the suspects to misuse subsidized fuel was modifying trucks and pickup tanks to fill them with subsidized fuel and then reselling it.
"We have arrested 92 suspects. The fuel was stored in the wrong place before reselling it. Then for LPG, they transferred it from melon LPG cylinders to LPG 12 and 50 kilograms cylinders," Farman explained.
In 2023, Pertamina imposed penalties on 58 petrol stations and 11 LPG Agents in the Jatimbalinus region.
By the end of October 2023, PT Pertamina Patra Niaga Regional Jatimbalinus had imposed penalties on 58 out of 1,344 operating petrol stations in the Jatimbalinus region.
The punishment types imposed vary, including written warnings issued to 20 petrol stations, temporary allocation suspension for Pertalite fuel for 14 petrol stations, and 44 petrol stations for Biosolar fuel. Additionally, one petrol station was ordered to improve its management, and two petrol operators were provided stern guidance.
The sanctioned petrol stations include 47 in East Java, 7 in Bali, 1 in NTB, and 3 in NTT. These penalties are reports from the public and Pertamina's independent investigations into the petrol station operators’ and employees’ practices regarding the misuse of subsidized fuel distribution.
Ahad mentioned that these penalties result from agreements between the distributing agency (petrol station) and Pertamina. "Out of these penalties, six originated from reports made by the public through Pertamina's call center at 135, 9 penalties were issued by the Supervision of BPH Migas. The rest were from Pertamina's centralized digital monitoring system, which can track every transaction anomaly for further investigation. Nevertheless, we encourage the public not to hesitate to report to Call Center 135," Ahad concluded.
In addition to SPBU stations, Pertamina also guided 11 LPG Agents in the Jatimbalinus region, with the type of guidance depending on the violations committed by LPG distributors. It includes various measures, such as warnings, allocation reductions, and temporary operational suspensions (Skorsing) to provide lessons and deter future violations.
Fadjar Djoko Santoso, VP of Corporate Communication of PT Pertamina (Persero), expressed his appreciation for the consistent efforts of law enforcement agencies, both the police and the military, in uncovering and taking action against the misuse of subsidized fuel and LPG. "The enforcement actions carried out by law enforcement agencies and the guidance provided by Pertamina are evidence of our joint commitment to ensuring that energy distribution is accurate and in compliance with the applicable rules, as well as educating the public and distributor partners to achieve energy distribution in line with regulations," Fadjar stated.
In six months, there were 406 police reports, in which 338 reports are still under investigation, and 435 people were named as suspects.
The National Police's Criminal Investigation Division (Bareskrim Mabes Polri) has successfully seized 717,850 liters of subsidized diesel, 501,730 liters of Pertalite, and 118,504 subsidized LPG cylinders.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**