 |
| South Kalimantan Police uncover illegal fuel and LPG subsidy abuse causing $775K in losses, arresting 33 suspects in a 25-day operation. (Illustration image) |
South Kalimantan Police have uncovered a major case involving the misuse of subsidized fuel and LPG, with estimated state losses reaching around $775,000. The figure comes from the total value of evidence seized during the operation.
Police Chief Rosyanto Yudha Hermawan explained that the case was handled by a special task force focused on tackling subsidy-related violations.
25-Day Operation Leads To Dozens Of Arrests
Between April 6 and May 4, 2026, investigators from the Special Crimes Directorate, along with 13 regional police units, uncovered 28 cases across multiple locations.
A total of 33 suspects were arrested, pointing to a widespread and possibly organized illegal distribution network.
Large Amount Of Evidence Seized
Authorities confiscated a significant volume of materials, including:
9,849 liters of pertalite fuel
2,985 liters of diesel
723 filled 3 kg LPG cylinders
488 empty 3 kg cylinders
2,213 portable gas canisters
Hundreds of containers and storage tanks
Multiple vehicles ranging from motorcycles to trucks
This large haul highlights the scale of the illegal operation.
How The Scheme Worked
According to Rosyanto Yudha Hermawan, fuel offenders used a method known as “fuel hoarding” or repeated small purchases at gas stations, which were later resold at higher prices.
For LPG, some distributors were caught selling above the government’s price cap. A newer tactic was also uncovered—transferring subsidized LPG into portable canisters.
In this setup, one 3 kg cylinder could be converted into around 10 portable gas cans, each sold for about $1. This product was even marketed online.
Police Target Wider Criminal Networks
Authorities emphasized that the investigation goes beyond field operators. Efforts are ongoing to track and dismantle larger, organized networks behind the illegal distribution.
Police are working closely with national energy agencies and state-owned companies to strengthen oversight and prevent future abuse.
Serious Legal Consequences For Offenders
Special Crimes Director M Gafur Aditya Siregar stated that suspects are being charged under oil and gas laws as well as consumer protection regulations.
Penalties may include:
Up to 6 years in prison and fines up to $3.7 million
Additional penalties of up to 5 years and fines up to $124,000
Stronger Monitoring And Public Reporting
Energy officials welcomed the crackdown and confirmed that monitoring systems at gas stations are being improved.
Authorities also warned that any LPG agents or distributors caught violating rules will lose their licenses.
Ensuring Subsidies Reach The Right People
This enforcement effort reflects a broader commitment to protect national energy resources and ensure subsidies are used properly.
Police have also opened public reporting channels, encouraging citizens to report violations—including misconduct by officers.
FAQ
1. How much was the total state loss?
About $775,000 based on seized evidence.
2. How many suspects were arrested?
A total of 33 suspects from 28 cases.
3. What was the main method used in the fuel scam?
Repeated purchases at gas stations followed by resale at higher prices.
4. What’s the new LPG scam method?
Transferring LPG into portable canisters and selling them individually, including online.
5. What penalties do suspects face?
Up to 6 years in prison and multi-million dollar fines.
