Police toughen stance on fuel hoarding and smuggling
Abdul Khalik and Apriadi Gunawan, The Jakarta Post, Jakarta/Medan
Following reports of recent fuel shortages in many regions, the police say they have launched intensive investigations into cases of fuel hoarding and smuggling.
In the past several weeks, the Jakarta Police have arrested many people for alleged involvement in kerosene hoarding pending the introduction of a planned price increase, as well as for involvement in the black market selling of subsidized kerosene to industry and the misuse of distribution licenses.
"We have intensified our monitoring on fuel distribution across Greater Jakarta as we realize that fuel hoarding and other fuel violations are becoming more common ahead of the price increases," Jakarta Police chief Insp. Gen. Firman Gani said on Friday.
The government announced recently that it would increase the prices of oil-based fuels early in October.
Vice President Yusuf Kalla said last week that fuel prices would be increased by up to 80 percent to reduce subsidy spending and the ensuing budgetary strains.
During two months of operations, the city police say they arrested 54 people for hoarding a total of 317 tons of fuel.
The police confiscated two tons of premium, 154 tons of diesel, 73 tons of kerosene and 85 tons of other kinds of fuel during the operations.
Police arrested Tan Kim Pauw, 60, on Wednesday at his home in Palmerah, West Jakarta, and confiscated more than 3,000 liters of kerosene after local residents complained of kerosene shortages.
Tan confessed that he bought most of the kerosene from agents and retailers in the surrounding area for Rp 1,000 per liter, and then sold it to several factories in Tangerang for between Rp 2,200 and Rp 5,500 per liter.
The government sets the price of kerosene for household use at Rp 700 per liter, and Rp 2,200 for industrial use.
"Other agents applied for license from Pertamina to distribute kerosene for households in particular areas but then sold it to factories outside these areas," Firman said.
He was referring to the latest case in Tangerang where 13 out of 42 kerosene agents allegedly misused their licenses by selling the kerosene to factories outside Tangerang regency, including Serang, Jakarta and other areas, to benefit from the higher margin.
The normal demand for kerosene in Tangerang was about 14 million liters, but state oil company Pertamina had distributed 29 million liters since 2003.
In Medan, North Sumatra, the Belawan port police together with other police units were investigating the possibility of fuel smuggling overseas through Pertamina submarine pipes.
Port police chief Sr. Adj. Comr. Dedy Prasetyo said on Friday that they needed help in identifying Pertamina's distribution lines. "We have often asked Pertamina officials to accompany us in our investigations, but they have yet to respond."
The police were suspicious after learning that the pipes, especially the two main lines, Bui I and Dermaga Jetti, which can channel more than 20,000 tons of fuel, were not guarded.
"We don't need the military or the police because we have our own security officers ... We never misuse the pipes for smuggling," a Pertamina spokesman in Medan, Djoko Sasono Putranto, told The Jakarta Post.