Asked About Subsidised Fuel Misuse, Industry Minister Responds Firmly

Jakarta, CNBC Indonesia - Industry Minister (Menperin) Agus Gumiwang Kartasasmita has emphasised that practices of misusing subsidised fuel by industries will entirely fall under the authority of law enforcement. On the other hand, he stated that the industrial sector is no longer using subsidised fuel. “Actually, for industry, subsidies are no longer provided. So, subsidies have never been given,” he said to reporters after the opening of the Apple Developer Institute at Autograph Tower, Jakarta, on Tuesday (21/4/2026). “And of course, if the issue is how to monitor, if there has been misuse, we leave it entirely to law enforcement,” Agus added. The price of fuel used by industries, he continued, is also determined based on market mechanisms. Currently, that market mechanism is affected by turmoil in the Strait of Hormuz, as a result of the US-Israel war against Iran. “Most of what industry needs is diesel. That is certainly for industry, and it is well recorded. And actually, the point I want to convey is that all non-subsidised fuel has pricing based on the market,” he stressed. “And we understand and realise that because of Hormuz, because of the Iran war, and so on, there are fluctuations and unfortunately, it leads to higher fuel prices,” said Agus. He also hopes that the current turmoil is only temporary. “But we hope this is only temporary in nature. Temporary. When the war is over, hopefully soon, there will be adjustments again for the price of non-subsidised fuel, which is based on market price,” Agus concluded. For information, the Indonesian National Police (Polri) uncovered cases of misuse of subsidised fuel oil (BBM) and LPG in an operation conducted from 7 to 20 April 2026, from 223 police reports. Deputy Head of Criminal Investigation Police (Wakabareskrim) Polri Inspector General Nunung Syaifuddin revealed that this further disclosure is a follow-up to the results of the operation released two weeks earlier. Over 13 days, the Directorate of Specific Crimes (Dirtipiter) of the National Police Criminal Investigation along with its ranks achieved significant results. “Over the 13-day period since the release two weeks ago, Dirtipiter Polri has achieved significant results in uncovering cases, namely 223 police reports. With 330 suspects,” said Nunung, in a press conference on Tuesday (21/4/2026).