Klaten LPG Subsidy Dilution Syndicate Nearly Causes State Loss of Rp6.7 Billion! Over 1,400 Cylinders Seized

The misuse of subsidised LPG in Klaten Regency, Central Java, has been uncovered by the National Police’s Criminal Investigation Agency (Bareskrim Polri) as part of efforts to enforce the law on the distribution of subsidised energy that is not reaching its intended targets. The Indonesian police stated that this practice directly impacts small-scale communities who should benefit from the subsidy. This was revealed by the Deputy Head of Bareskrim Polri, Inspector General of Police Nunung Syaifudin. “The practice of misusing subsidised goods, in this case LPG and fuel, is not only a betrayal of the state but also a betrayal of the small-scale communities who are entitled to receive this subsidy,” he said on Saturday, 2 May 2026. The Director of Specific Crimes at Bareskrim Polri, Brigadier General of Police M. Irhamni, added that the uncovering of this case began with a report from the public received on 15 April 2026, which was immediately followed up with an investigation. “This law enforcement is a follow-up to the public information report we received and was immediately followed up with an investigation,” Irhamni stated. He said the team conducted a raid on the early morning of 28 April 2026 at a warehouse in Wonosari Subdistrict, Klaten, which was used for the injection of subsidised LPG. During the raid, police secured 1,465 LPG cylinders of various sizes, injection equipment, and six operational vehicles used in the illegal activity. The modus operandi of the perpetrators involved transferring the contents of 3-kilogram subsidised LPG cylinders to non-subsidised 12-kilogram and 50-kilogram cylinders to be resold at higher prices. “The gas from subsidised cylinders is transferred to non-subsidised cylinders using certain techniques, then sold at non-subsidised prices to gain profit,” he said. Two suspects were arrested, initials KA (40) as the injector and weigher, and ARP (26) as the transport driver. According to Irhamni, this uncovering also prevents significant potential state losses. “We have successfully prevented potential state losses of approximately Rp6.7 billion,” he emphasised. Polri reaffirms its commitment to continue addressing similar practices up to the broader network, including the financiers. “We will not stop and will take action up to the financiers and their networks,” he said.