Fuel-laden tanker intercepted

Fadli, The Jakarta Post, Batam

A Panamanian-registered tanker Abber 32, laden with subsidized diesel fuel, was intercepted by a water and air police unit at Batu Ampar port in Batam at around 1 a.m. on Monday.

Chief of the Batam, Rempang and Galang (Barelang) water and air police unit, Adj. Comr. Marsigit Kurniawan, told The Jakarta Post on Monday that his unit had intercepted the tanker based on observations of its activities at the Batu Ampar Port for the past three months.

"After cross-checking on the reports we received from our sources at the port with the available facts, we concluded that the vessel had been siphoning off subsidized diesel fuel to supply the ship rental business," said Marsigit.

He said the tanker had been leased by PT Pan Liberty Natuna, an oil exploration company in Natuna regency, to transport logistical equipment from Batam. The vessel, with a payload of 50 tons, had been filling up with diesel fuel once every four days in Batam, ostensibly for the company's needs in Natuna.

"They first began hoarding fuel from small-scale suppliers in Batam, and would fill the vessel with the illegally purchased fuel at Batu Ampar Port. The fuel loaded on to the vessel was subsidized fuel for public consumption, but had been used for industrial purposes," said Marsigit.

Police found evidence in the form of four tons of diesel fuel in the hold of the Abeer 32 which was docked at the port, and had arrested its five crew members, the chief mechanic and skipper, all of whom are Indonesian citizens.

"They are still being questioned by the Barelang police detectives now," said Marsigit.

According to Marsigit, police will likely charge with a violation of Law No. 22/2001 on Oil and Natural Gas, by exploiting subsidized fuel. Police are also investigating their possible co-conspirators involved in the case.

"We are still investigating who the fuel suppliers are. This scam has been going on for the past several months," said Marsigit.

On Sept. 9, the Indonesian Navy intercepted the Jaya Success tanker, while it was pumping diesel fuel on to the Singaporean Aiwa Maru tanker, flying a Honduran flag, in an out-port-limit area off Batam.

This modus operandi has become all to common in recent years due to the marked difference in price between domestic and international fuel, which has prompted many local companies to smuggle fuel out of the country.