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The Energy and Mineral Resources Ministry announced Monday
the establishment of a more powerful task force to combat the illegal
trade in subsidized fuel, which is estimated to be costing taxpayers
some Rp 54.7 billion (US$6.08 million) a year.
Tubagus Haryono, the chairman of the Downstream Oil and Gas Regulatory
Agency (BPH Migas) and acting chairman of the team, said Monday that
the new team would include representatives drawn from the National
Police and Attorney General's Office, and would have the power to
initiate investigations and prosecutions.
Unlike the previous team, which was overseen by state oil and gas firm
PT Pertamina, the new team's day-to-day work will be supervised by the
coordinating minister for political, legal and security affairs,
Tubagus said.
"If the team uncovers evidence in the field, it can be followed up by a
police investigation," he explained.
Through close coordination with the police, he said, it was expected
that the team would be able to deal effectively with the illegal trade
in subsidized fuel throughout the country.
Previously, the team was only able to focus on 10 areas in Jakarta,
including Cakung, East Jakarta, which have reportedly played host to
illegal fuel depots.
Having police representatives sitting on the team, Tubagus said, would
allow it to extend its work to rural areas.
"We are targeting the inspection of 20 locations this year," he said,
while refusing to reveal their names.
Tubagus said that each illegal fuel depot had the potential to cost the
state some Rp 150 million in losses every day.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said that the
new team would need to focus on controlling the distribution of
subsidized oil-fuel products, including gasoline and diesel, which were
frequently sold illegally to industry, which is supposed to pay market
prices for these fuels.
In response to the establishment of the new team, Pertamina director
Ari Sumarno said the government needed to uphold the law against
offenders as many cases involving big firms ended up targeting small
fry, such as truck drivers, rather than those actually behind the
illegal trade.
Many companies and individuals are involved in illegally selling
subsidized fuels, particularly kerosene, to industry so as to profit
from the price differential between subsidized and unsubsidized fuels.
Some are also believed to be involved in selling subsidized diesel oil
to foreign shipping companies.
Tubagus said that based on articles 53, 54 and 55 of the 2001 Oil and
Gas Law, offenders could be sentenced to between five and ten years in
prison.
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