Indonesian Political, Business & Finance News

Bareskrim Reveals Various Methods of Diverting Subsidised Fuel and LPG, Damaging the State

| Source: DETIK Translated from Indonesian | Regulation
Bareskrim Reveals Various Methods of Diverting Subsidised Fuel and LPG, Damaging the State
Image: DETIK

The Directorate of Specific Criminal Acts (Dirtipidter) of Bareskrim Polri has revealed various methods of diverting subsidised fuel oil (BBM) and LPG. These illegal practices are said to harm the public and the state’s finances. Dirtipidter Bareskrim Polri Brigadier General Mohammad Irhamni explained that the most common method involves perpetrators repeatedly purchasing subsidised diesel at multiple petrol stations. The fuel is then stockpiled at certain locations before being resold to industries at non-subsidised higher prices. “One can imagine how much the industrial price is today, Rp 24,000, while the subsidised price is only Rp 6,800—what a profit they make. This is what the Deputy Chief of Bareskrim mentioned earlier; it’s certainly very tempting,” Irhamni said during a press conference at Bhayangkara Field, National Police Headquarters, South Jakarta, on Tuesday (7/4/2026). Perpetrators use vehicles modified with large-capacity tanks to transport greater quantities of subsidised fuel. Another method involves using fake vehicle licence plates to bypass the barcode system. “Perpetrators buy subsidised fuel using fake number plates to switch barcodes, thereby circumventing the surveillance or security systems implemented by Pertamina,” he explained. “This is commonly done by perpetrators who often collaborate with petrol station staff in the field,” he added. In the case of LPG, a frequent method is transferring the contents of 3kg subsidised LPG cylinders to 12kg and 50kg non-subsidised cylinders. The LPG is then sold as a non-subsidised product at a higher price. Irhamni emphasised that the uncovering of these cases was conducted in an integrated manner between Bareskrim Polri and provincial police forces across Indonesia. Enforcement targets not only field perpetrators but also traces organised illegal distribution networks. “This is a form of Polri’s commitment to safeguarding national energy sovereignty and ensuring that subsidies provided by the state are truly enjoyed by entitled members of the public,” he stated. The suspects are charged under Article 55 of Law No. 22 of 2001 on Oil and Gas as amended by Law No. 6 of 2023 on Job Creation, facing a maximum prison sentence of 6 years and fines up to Rp 60 billion. Irhamni said his side would apply money laundering offence articles to trace and seize proceeds of crime that have been converted into various asset forms. “There is no tolerance for this; it is also a joint commitment between Polri and other stakeholders, especially from TNI counterparts,” he said. Previously, Bareskrim Polri dismantled 755 crime scenes involving the misuse of subsidised BBM and LPG throughout 2025 up to April 2026. In total, 672 suspects were arrested by Bareskrim Polri. These illegal practices potentially caused state losses of up to Rp 1.26 trillion. He stated that losses from the misuse of subsidised BBM amounted to approximately Rp 516.8 billion, while losses from the misuse of subsidised LPG amounted to approximately Rp 749.2 billion.

View JSON | Print