Team to tackle kerosene scams

Team to tackle kerosene scams

Muninggar Sri Saraswati, The Jakarta Post/Jakarta

Blaming those ubiquitous "certain parties" for causing the
kerosene scarcity through their fuel-smuggling deeds across
Indonesia, the government said on Friday it would establish a
joint team to fight the illegal practices that were undermining
its fuel policy.

Kerosone shortages have continued in many areas around the
country following the government's decision to raise the fuel
prices by an average of 29 percent on March 1, but the with the
key exception of the household kerosene, which remains subsidized
at a price of Rp 700 per liter. It was meant to alleviate the
burden of low-income families -- the largest group of users.

Many have blamed the problem on the ever-present "certain
parties", apparently some from within and some from outside of
state-owned oil firm Pertamina, who also mixed the cheaper
kerosene with gasoline. They sell the mixed gasoline at the
normal prices and increase their profit margin.

The plan to set up the team to look into the corruption was
decided in a meeting led by President Susilo Bambang Yudhoyono to
discuss the issue on Friday.

Also attending were National Police chief Gen. Da'i Bachtiar,
Indonesian Military commander Gen. Endriartono Sutarto, State
Intelligence Agency head Maj. Gen. Syamsyir Siregar, Coordinating
Minister for Political, Legal and Security Affairs Widodo Adi
Sucipto and Minister of Energy and Mineral Resources Purnomo
Yusgiantoro.

Endriartono said the President ordered Widodo to lead the
team, consisting of police, military, Pertamina and BIN officers.

"The President does not want negative excesses from the fuel
price hike policy, such as kerosene scarcity, smuggling and fuel-
mixing, to cause more burdens on the people," Endriartono
announced after the meeting.

The team will mainly be tasked with preventing possible
manipulation of kerosene supplies for households, reducing
pengoplosan, the mixing of kerosene with other fuel, and
minimizing fuel smuggling.

Da'i said the police would take the "persuasive approach" to
deal with the manipulation that led to the kerosene scarcity.

"The kerosene supplies from Pertamina are actually sufficient.
It has also delivered additional supplies, but the scarcity
continues. We think there are people buying kerosene in a
significant amount when the supply is delivered from one station
to another. We'll prevent it through the persuasive approach," he
said.

The government maintained the subsidized price of kerosene for
households at Rp 700 per liter, but raised to Rp 2,200, the price
for industry.

"Why does the kerosene scarcity continue? We smell foul play
by 'certain groups' behind it," Da'i elucidated.

Cabinet Secretary Sudi Silalahi, who also attended the
meeting, did not identify the "certain groups", but vowed that
the authorities would deal with them, so "the people would know
the players".

Purnomo said kerosene scarcity has been reported mostly in
Jakarta and Lampung.

"It happens because of the disparity between prices (of
kerosene for households and that for industry). This causes
smuggling, misuse and pengoplosan," he said.

Purnomo said Pertamina could not make additional kerosene
supplies because it would exceed the limits of subsidies
stipulated in the state budget.

He urged the authorities to enforce the law to stop or reduce
the misuse of kerosene, which he said causes some Rp 2 trillion
in state losses a year.