Mon, 12 Sep 2005

Arrests of fuel distributor bosses leave employees in limbo

Fadli, The Jakarta Post, Batam

The arrests of executives for fuel smuggling at Pertamina-partner companies in Batam have left the firms' workers fearing for their future.

An employee at PT Era Pradipta Cipta Mandiri, a company that distributed fuel for Pertamina in the Batam area, said he feared around 80 workers at the firm's fuel depot would lose their jobs after the arrest of company owner Terek Adenan.

Terek, who was taken into custody by police on Aug. 30, is charged with smuggling subsidized fuel to Singapore.

"After the arrest, our company's situation became uncertain," Kusman, 27, a security guard at the company, said.

Police have also arrested PT Russel owner Franky and Ati, an executive at a PT Russel subsidiary, on similar charges.

Terek and other employees still have their jobs at the depot, which is now being used by a PT Pertamina subsidiary that also distributes fuel in Batam.

The arrests of the two company executives came after the government was criticized on Friday for doing little to catch the "big-fish" fuel smugglers, who are believed to be making millions from sending subsidized gasoline overseas.

Others fear the arrests of the executives will have little effect on the incomes of other crooked fuel distributors, who are believed to be cooperating with Pertamina officials and to have many diversified businesses.

Pertamina Batam operations chief Nono Asmanu confirmed that Pertamina had ended its business with Franky and Terek's companies shortly after their arrests.

Nono denied executives in his company had cooperated with the fuel distributors to smuggle fuel to Singapore.

"We are not responsible for what they have done. We cannot monitor them around the clock," he said.