67 Petrol Stations in South Kalimantan Penalised for Fuel Distribution Violations

The Fuel Task Force for South Kalimantan Province, through Pertamina and the Regional Police (Polda), has taken action against at least 67 public fuel stations (SPBU) across various areas for involvement in irregular fuel distribution practices. The misappropriation of subsidised fuel in South Kalimantan is strongly suspected to have partly supplied illegal mining activities.

“Efforts to monitor and rectify irregularities in subsidised fuel distribution are ongoing,” said Ahmad Bagiawan, Head of the South Kalimantan Trade Office and a member of the task force overseeing fuel supervision, on Wednesday (22 July).

Sanctions against the offending petrol stations range from administrative penalties to temporary suspension of operations. The large number of stations involved in fuel irregularities indicates that fuel distribution governance still requires comprehensive reform. “We hope the Fuel Task Force can work to its fullest, because this is hugely detrimental to the wider public,” he asserted.

Echoing this view, Syaripuddin, Chair of the Special Committee for Fuel Distribution Oversight in the South Kalimantan Provincial Parliament (DPRD), stressed that handling the issue must not stop at administrative sanctions. “Sanctions against 67 petrol stations is not a small number. This shows there are still loopholes in fuel distribution and supervision. Do not merely punish, but unearth the root of the problem and fix the system,” he declared.

The wide price disparity between subsidised and non-subsidised fuel has fuelled the proliferation of subsidised fuel diversion practices. In particular, subsidised biodiesel is widely reported to be supplied to the mining sector, including illegal coal and gold mining operations in various regions.

Raden Rafiq Wibisono, Executive Director of the Indonesian Forum for the Environment (Walhi) in South Kalimantan, highlighted the weakness of law enforcement against illegal mining activities. “The issue of illegal mining is like a road without end. Market logic will always be one of the causes. For example, soaring gold prices have triggered a rise in illegal gold mining practices,” he said.

Law enforcement that proceeds without accompanying improvements in community capacity and the provision of alternative grassroots economic opportunities by the government will remain an agenda without comprehensive resolution. In relation to law and regulation, the issue must be examined from upstream to downstream.