Antara News·Indonesia·Friday, October 23, 2026 at 08:59 AM UTC

Indonesia moves to crack down on industrial subsidized fuel misuse

Translate

Putu Indah, Tegar Nurfitra

Jakarta (ANTARA) - Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said the government has identified indications of subsidized fuel being diverted for industrial use.

"We have maintained from the outset that there are indications of some parties misusing subsidized fuel for industrial purposes," Lahadalia said at the Energy and Mineral Resources (ESDM) Ministry in Jakarta on Friday.

Lahadalia, who also serves as ESDM minister, noted that the ministry's Directorate General of Law Enforcement acted on one case in Semarang, Central Java, in collaboration with the Indonesian Navy.

"That serves as one example we found at sea. However, similar practices are also evident on land, where many vehicles that are not eligible to use subsidized fuel, such as heavy-duty trucks, continue to do so," he said.

The minister recalled a recent visit to Kalimantan, where he observed mining and plantation vehicles queuing for subsidized fuel.

"Some of these vehicles were still found lining up to use subsidized fuel," Lahadalia noted.

He made the statement following reports that 406,000 liters of B50 diesel fuel were illegally transported by the self-propelled oil barge NURFAIZAH 03 off Tanjung Emas, Semarang.

The ESDM Ministry launched an investigation into the violation to ensure compliance with fuel distribution regulations and protect public supply integrity.

The case was uncovered during a naval inspection of NURFAIZAH 03 on Sept. 15, 2026.

Following the discovery, Semarang Naval Base V referred the case to the ESDM Ministry for further investigation and legal enforcement.

View the original on Antara News →

KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.