Govt urged to act to curb fuel smuggling

JAKARTA (JP): A Reform faction legislator has called on the government to take strict measures against "rife" fuel smuggling which he said was causing massive losses to government and consumers.

"The government must take strict action because smuggling has caused diesel oil and kerosene scarcities in Central and East Java, East Kalimantan and several other provinces," faction deputy-secretary Alvin Lie said.

He said fuel smuggling should be declared subversion because fuel was subsidized in the state budget.

Lie, also a member of the House's commission for industry and trade and the budget committee, alleged that smuggling had been conducted for some time in Jakarta, Palembang, South Sumatra and Batam, Riau.

He also alleged that officials from state-owned fuel company Pertamina and the Association of Army Cooperatives (Inkopad) may be involved.

Pertamina should be held responsible for the smuggling because it is in charge of distributing the fuel nationwide, he said.

Lie said that a confidential intelligence report on fuel smuggling to Jakarta Military Chief Maj. Gen. Ryamizard Ryacudu on April 3, 2000, reveled that several officers from the association were found to be involved in the smuggling.

The report alleges that association members oversaw the piping of around 1,200 tons of diesel oil and kerosene onto several barges at Tanjungpriok port on March 23 and March 24, 2000.

The fuel was loading at night and then transferred to several tankers waiting out to sea to be transported to Malaysia and Singapore, said the report.

It said the illegal selling of fuel involved four officers, including an Army lieutenant colonel from the association.

Inkopad chairman Brig. Gen. Sudjalmo was not available for comment on Tuesday, but a staffer at his office who declined to identify himself denied the report, saying that Inkopad was not involved in fuel smuggling. (rms)