SBY cracks down on oil smugglers<\/p>\n
Muninggar Sri Saraswati, The Jakarta Post, Jakarta<\/p>\n
President Susilo Bambang Yudhoyono has summoned PT Pertamina's
\nboard of directors to a meeting on Friday after police announced
\ntheir findings on the involvement of the state oil and gas firm's
\nofficials in the smuggling of crude and refined oil, estimated to
\nhave resulted in annual losses to the state of Rp 8.8 trillion
\n(US$850 million).<\/p>\n
\"I will meet with Pertamina directors tomorrow (Friday) to be
\nheld accountable for what has happened in the firm. This
\n(eradication of oil smuggling) is important in order to deal with
\nthe (domestic) fuel problems apart from other policies,\" the
\npresident said after a limited Cabinet meeting on Thursday.<\/p>\n
The authorities, Susilo said, would investigate possible
\ninvolvement of Pertamina officials.<\/p>\n
The Cabinet meeting was attended by, among others, National
\nPolice Chief Gen. Sutanto, Coordinating Minister for Political,
\nLegal and Security Affairs Widodo Adi Sucipto, Coordinating
\nMinister for the Economy Aburizal Bakrie and Minister of Energy
\nand Mineral Resources Purnomo Yusgiantoro.<\/p>\n
Susilo said that curbing oil smuggling has been his priority
\nin helping to solve domestic oil problems.<\/p>\n
\"Many don't really believe that (oil) smuggling disrupts the
\nsecurity of our (oil) supplies, or that it has caused huge
\nfinancial losses to the state.\"<\/p>\n
Susilo said that the authorities have so far seized 17 ships
\nalong with 6,000 tons of diesel fuel and kerosene. A total of 58
\npeople have been arrested -- including 18 Pertamina officials and
\nfive foreigners -- during the operations.<\/p>\n
\"What concerns me most is that this crime has cost the state
\nRp 8.8 trillion every single year. We must stop this,\" he said.<\/p>\n
Indonesia has been hit hard by soaring oil prices, which are
\nhovering around US$65 per barrel, and has now become a net oil
\nimporter. Costs for the fuel subsidy this year could reach up to
\nRp 119.4 trillion, according to latest estimates from Pertamina.<\/p>\n
Sutanto said Pertamina officials would likely be charged with
\ntheft, oil smuggling and corruption, as well as violations of the
\noil and gas law.<\/p>\n
He said that a smuggling network operating in East Kalimantan
\ninstalled a seven-mile-long pipeline connecting the Lawe-lawe oil
\nport to offshore.<\/p>\n
\"They did it at night, between 11 p.m. and 3 a.m. They took
\nthe oil and replaced it with sea water,\" Sutanto said, adding it
\nonly took about three hours to fill a 3,000-ton tanker.<\/p>\n
The crude oil was supposed to be transported to the East
\nKalimantan and Cilacap oil refineries.<\/p>\n
The network involves Pertamina officials and foreign
\nnationals. Former Pertamina oil tanker captains are also involved
\nin the crime.<\/p>\n
Another smuggling network uncovered by the police operates in
\nthe Riau Islands. The network is allegedly responsible for 70
\npercent of oil smuggling activities in the western part of
\nIndonesia.<\/p>\n
\"It involves both Indonesians and foreigners. We have informed
\nCID,\" he said, referring to the Singapore Police Force's Criminal
\nInvestigation Department.<\/p>\n
One of the five foreigners holds Chinese citizenship while the
\nrest are Singaporeans.<\/p>\n
The police have also uncovered other oil smuggling networks
\noperating in Central Java, East Java and the eastern parts of
\nIndonesia.<\/p>",
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