South Sulawesi Police Uncover Subsidised Fuel Smuggling, Causing Rp69 Billion Loss to State
The South Sulawesi Regional Police (Polda Sulsel) have successfully dismantled a large-scale criminal network involved in the misuse of subsidised fuel operating across provinces. This illegal practice is estimated to have cost the state approximately Rp69.9 billion over the last five months.
South Sulawesi Regional Police Chief, Inspector General Djuhandhani Rahardjo Puro, revealed that the massive operation, conducted between January and May 2026, targeted 37 different locations. During the raids, officers seized at least 229,123 litres of subsidised diesel, 3,031 litres of Pertalite, and 1,541 units of 3kg LPG cylinders.
The investigation began following a police report in February 2026, which subsequently expanded into Central Kalimantan. Police discovered a highly organised modus operandi involving the manipulation of fuel quota transport invoices.
“Based on the initial invoices, the fuel transport quota was only recorded at 30 kilolitres. However, the facts on the ground showed that the same vessel with identical registration was actually transporting 700 kilolitres to Central Kalimantan,” Djuhandhani stated during a press conference in Makassar on Tuesday (2/6/2026).
In addition to falsifying documents, the perpetrators allegedly modified fuel tankers to resemble official Pertamina fleets to deceive field officers during the illegal transport process.
To date, investigators from the Special Criminal Directorate of Polda Sulsel have named seven main suspects with varying roles, ranging from a shipping company director to warehouse owners. Authorities also seized significant assets, including one tanker, two Self Propelled Oil Barges (SPOB), and dozens of transporter trucks and fuel tankers. The process of transporting the seized vessels from Central Kalimantan to Makassar reportedly took eight days due to the vessels’ damaged condition and technical difficulties.
The Police Chief emphasised that the state loss of Rp69,907,907,343 is a staggering figure. If converted, the volume of smuggled fuel is equivalent to the consumption needs of 205,611 vehicles, assuming each vehicle fills 50 litres.
“This is an extraordinary crime that harms the many. Imagine if this fuel had not been smuggled; it could have met the needs of thousands of eligible citizens,” he asserted.
The suspects are currently facing charges under Article 55 of Law Number 22 of 2001 concerning Oil and Gas, as amended by Law Number 6 of 2023 on Job Creation. They face a maximum prison sentence of six years and a fine of up to Rp60 billion.