Govt urged to act to curb fuel smuggling

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)