15 arrested for hoarding 250,000 tons of fuel
Apriadi Gunawan, The Jakarta Post, Medan
Medan Police announced on Tuesday they had arrested 15 people, including officials of state oil and gas company PT Pertamina, suspected of hoarding 250,000 tons of kerosene and diesel fuel in Belawan.
North Sumatra Police chief Insp. Gen. Iwan Pandjiwinata said that in a joint operation with National Police Headquarters, the police found six different locations -- including three gas stations -- in Belawan where the hoarded fuel was allegedly being stored.
He said the police confiscated 250,000 tons of fuel and arrested 15 suspects, including two people, identified only as DSR and SG, believed to be responsible for the hoarding.
"The syndicate has been hoarding fuel in Belawan for some time. Some of the suspects own gas stations, others worked as drivers. The police suspect the syndicate was not working on its own but was also involved with staff from Pertamina," Iwan said.
Medan Police chief Sr. Comr. Irawan Dahlan said a preliminary investigation found that 13 of the 15 people arrested worked for Pertamina, but refused to disclose any details because the case is still under investigation.
Irawan said the police were able to break up the syndicate after staking out the locations where the fuel was being stored for three days.
Iwan blamed recent kerosene and diesel fuel shortages in Medan on the hoarders. "Their actions caused suffering for people and we will take action against those who hoard fuel to make a profit."
When asked about the suspected fuel hoarding and reports that company staff were involved, Pertamina's spokesman in Medan, Joko Sasono Putranto, said he knew nothing about the case.
It would not be the first time Pertamina staff were involved in hoarding fuel, a lucrative business because the government's fuel subsidy policy has led to low fuel prices at home compared to prices on the international market.
In September this year, seven Pertamina officials were arrested for their involvement in the smuggling of subsidized fuel products to neighboring countries.