Indonesian Political, Business & Finance News

BPH Migas Blocks 307,000 QR Codes and Sanctions 2,694 Petrol Stations

| Source: CNBC Translated from Indonesian | Energy
BPH Migas Blocks 307,000 QR Codes and Sanctions 2,694 Petrol Stations
Image: CNBC

The Downstream Oil and Gas Regulatory Agency (BPH Migas) has blocked 307,107 QR codes belonging to subsidised fuel customers and imposed sanctions on 2,694 petrol stations across Indonesia. The move is intended to ensure that subsidised fuel distribution is received only by those entitled to it.

Head of BPH Migas Wahyudi Anas explained that the enforcement actions were based on findings from digital transaction data and physical field supervision. The agency is continuously cleaning data to prevent the use of illegal digital identities duplicated by irresponsible parties.

“We are also continuing to optimise to ensure the distribution of subsidised fuel is on target. We have blocked almost 307,107 QR codes, and this number continues to grow due to illegally produced QR codes and so on,” he stated during a hearing with Commission XII of the Indonesian House of Representatives in Jakarta on Thursday.

In addition to blocking QR codes, the agency has imposed developmental sanctions on 2,694 distributors proven to have violated regulations or served non-consumer users. The agency noted indications of cooperation between petrol station operators and individuals to facilitate illegal fuel filling using fake documents.

“We have also imposed developmental sanctions on nearly 2,694 distributors. This is ongoing due to factors such as regulatory compliance and services to non-consumer users, which are the focus of the sanctions on these distributors,” he added.

According to BPH Migas records, the state has potentially saved 24,711.17 kilolitres of subsidised and compensation fuel distributed through 449 petrol stations. The value of the budget saved from potential misuse amounts to nearly IDR 470 billion.

The agency also found that many vehicles filled with fuel were physically unroadworthy or had expired vehicle registration documents, particularly along the Sumatra Cross Road. This presents significant obstacles, including vehicles with modified tanks to hold more fuel.

One of the most common schemes discovered is the “helicopter” method, where a single vehicle refuels repeatedly using multiple different digital identities. In one case, an individual was found to possess 16 QR codes with 16 different licence plates to fill a 1,000-litre tank.

“We have found many instances, based on our digitalisation data, where the same vehicle is used for distribution daily with different QR codes and a frequency of more than once a day,” he revealed.

As a follow-up, the agency is preparing a roadmap for developing an integrated, artificial intelligence-based IT system this year. The system is expected to identify abnormal transactions in real-time to close loopholes in subsidised fuel misuse across all regions of Indonesia.

“This is important to create a deterrent effect, so that subsidised fuel distribution is more selective and reviewed to ensure it runs properly,” he concluded.

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