Indonesian Political, Business & Finance News

15 arrested for hoarding 250,000 tons of fuel

| Source: JP

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.

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