Indonesian Political, Business & Finance News

Exposed! Central Java and East Java Become 'Havens' for Fuel and Subsidised LPG Mafia with Losses Exceeding Rp243 Billion

| Source: VIVA Translated from Indonesian | Regulation
Exposed! Central Java and East Java Become 'Havens' for Fuel and Subsidised LPG Mafia with Losses Exceeding Rp243 Billion
Image: VIVA

A major revelation by the Indonesian National Police’s Criminal Investigation Agency (Bareskrim Polri) regarding the misuse of subsidised fuel (BBM) and LPG has not only implicated hundreds of perpetrators but also highlighted new vulnerable regions. Central Java and East Java are identified as areas with the highest violation rates during the period from 7 to 20 April 2026. Director of Special Crimes at Bareskrim Polri, Brigadier General of Police Moh Irhamni, revealed that the surge in cases in these two provinces is evident from the numerous reports received by the police. “This shows that in East Java and Central Java, it is still rampant,” he said on Tuesday, 21 April 2026. The high number of cases in these regions is believed to be closely linked to the dense energy distribution networks, particularly public fuel filling stations (SPBU). East Java alone has around 1,000 SPBU, making them potential hotspots for misuse. The perpetrators exploit this situation with classic yet massive methods. Subsidised BBM and LPG are purchased in large quantities, collected, and diverted to the industrial sector for resale at non-subsidised prices. “With the methods we mentioned earlier, they are then collected, taken to storage sites, and sold to industries. This can be seen from the distribution of the number of operating SPBU in those areas. Central Java and East Java have the most,” he said. Nationally, over that 13-day period, the police recorded 223 cases with a total of 330 suspects successfully apprehended. The value of state losses from these illegal practices is significant, reaching Rp243 billion. This finding also explains the impacts felt by the public, from shortages of 3-kilogram LPG cylinders to long queues at SPBU. Polri reaffirms its commitment to continue dismantling networks of energy subsidy misuse that harm the state and the wider community. “We emphasise that Polri will continue to be present and committed to enforcing the law firmly, professionally, transparently, and justly to safeguard national interests and public welfare,” he stated. Previously reported, the Directorate of Special Crimes at Bareskrim Polri, along with regional police commands, successfully uncovered hundreds of subsidised BBM and LPG misuse cases in a short time.

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