Indonesian Political, Business & Finance News

Bahlil Says Many Mining and Plantation Vehicles Queue for Subsidised Fuel

| Source: CNBC Translated from Indonesian | Energy
Bahlil Says Many Mining and Plantation Vehicles Queue for Subsidised Fuel
Image: CNBC

Jakarta, CNBC Indonesia — Coordinating Minister for Downstreaming and Energy Transition and Energy and Mineral Resources Minister Bahlil Lahadalia has highlighted widespread abuse of subsidised fuel, with cases found in the mining and plantation sectors, whose vehicles are still queuing to obtain it.

Bahlil said many heavy vehicles, including tronton trucks, which are not entitled to use subsidised fuel, were nevertheless found queuing for it.

“Offshore, yes, but on land it happens too. There are many vehicles that should not be taking subsidised fuel but are using it. Tronton trucks are one example,” Bahlil said at the Energy and Mineral Resources Ministry in Jakarta on Friday (23 October 2026).

He described what he had seen during a visit to Kalimantan, where some vehicles used in mining and plantations were still queuing to obtain subsidised fuel intended for eligible members of the public.

“In Kalimantan, I was there yesterday. Some vehicles used for mining, and some for plantations, are still queuing to get subsidised fuel,” he added.

The discovery of this misconduct adds to enforcement action against the misuse of subsidised fuel at sea, previously carried out by the Ministry of Energy and Mineral Resources’ Directorate General of Law Enforcement in collaboration with the Indonesian Navy.

The government said suspected misuse of subsidised fuel by industrial sectors remains a focus of enforcement.

“From the outset, we said there were indications that some parties were misusing subsidised fuel for industrial purposes. The Law Enforcement Directorate made an arrest yesterday in cooperation with the Navy. That is one example of the evidence,” he said.

The Ministry of Energy and Mineral Resources’ Directorate General of Law Enforcement has taken over a case involving the alleged illegal transport of 406,000 litres of B50 diesel from the Indonesian Navy. The case follows the discovery of a fuel-distribution violation in the waters off Tanjung Emas, Semarang.

The ministry’s Director General of Law Enforcement, Rilke Jeffri Huwae, said the suspected fuel-distribution irregularity was being treated seriously to prevent disruption to public energy supplies.

“Initial findings indicate that the vessel was planned to carry up to around 1,100 kilolitres,” Jeffri said in an official statement, cited on Friday (23 October 2026).

Official purchase documents from Pertamina Patra Niaga Pengapon recorded a volume of just 24 kilolitres. This is 382 kilolitres less than the 406 kilolitres of B50 diesel found in the shipping evidence aboard the vessel.

“Laboratory test results will be used to establish the quality and quantity of the evidence more precisely and support the further investigation,” Jeffri said.

The ministry is continuing its investigation by examining documents and witnesses and tracing the fuel supply chain. The enforcement action is intended to prevent potential shortages and economic harm to the public.

“If fuel distribution is disrupted, the effects could spread, from potential supply shortages and queues at petrol stations to disruption of economic activity in Semarang and surrounding areas,” Jeffri said.

Separately, the commander of Indonesian Navy Base V Semarang, Marine Colonel Sabprowanto, described the transfer of the case file and the monitoring of the vessel carrying the diesel. The base said the vessel, which is being held as evidence, remains at the port under close supervision.

“The case file for the vessel NURFAIZAH 03 was handed over today. The vessel remains at Tanjung Emas Port as evidence and will continue to be monitored,” Sabprowanto said.

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