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Bali Police Bust Subsidized Fuel and LPG Syndicates, Prevent Rp1.2 Billion in State Losses

Bali Police Bust Subsidized Fuel and LPG Syndicates, Prevent Rp1.2 Billion in State Losses

BALINEWSID.COM, DENPASAR – Bali Police have dismantled eight major cases involving the illegal distribution and misuse of government-subsidized fuel (BBM) and LPG during a series of operations conducted between May and June 2026. The crackdown prevented potential state losses estimated at Rp1.254 billion.

The announcement was made during a press conference on Monday (June 29), led by Bali Police Chief Inspector General Daniel Adityajaya, accompanied by Director of General Criminal Investigation Senior Commissioner Lintar Mahardhono, Director of Special Criminal Investigation Senior Commissioner Wisnu Prabowo, Head of Public Relations Senior Commissioner Ariasandy, and Head of the Professional Standards and Internal Affairs Division Senior Commissioner Ketut Agus Kusmayadi.

Police arrested eight suspects in separate operations across Bali, comprising four suspects involved in subsidized LPG cylinder tampering and four suspects accused of illegally trading subsidized Pertalite fuel.

The LPG subsidy cases were uncovered in Gianyar, Denpasar, Buleleng, and Tegallalang, Gianyar. Three of the cases have been transferred to prosecutors, while one remains under investigation pending expert examinations.

Meanwhile, the Pertalite subsidy cases were uncovered in Jembrana, Denpasar, Tabanan, and Badung. Three case files have also been submitted to prosecutors, while one investigation is still ongoing.

According to investigators, the suspects employed two primary methods to exploit the government’s subsidy program.

In the LPG cases, the suspects illegally transferred gas from 3-kilogram subsidized cylinders into 12-kilogram non-subsidized cylinders using specially designed steel pipes. The refilled cylinders were then sold at regular market prices, generating unlawful profits.

In the fuel cases, the suspects repeatedly purchased subsidized Pertalite at multiple Pertamina gas stations using vehicles equipped with modified fuel tanks. They also manipulated subsidized fuel barcode data to bypass purchase restrictions before stockpiling and reselling the fuel for profit.

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During the operation, police seized a significant amount of evidence.

For the LPG cases, officers confiscated 234 filled 3-kg LPG cylinders, 66 empty cylinders, 22 filled 12-kg cylinders, 44 empty 12-kg cylinders, 22 gas transfer pipes, two metal prying tools, cylinder seals, Rp1 million in cash believed to be proceeds of the crime, and one motorcycle.

In the fuel subsidy cases, investigators seized 1,327.5 liters of Pertalite, three specially modified vehicles, five motorcycles, 32 fuel gallons, 30 jerry cans, 82 plastic bottles used for fuel storage, seven hoses, four funnels, several carrying bags, and three mobile phones.

Police estimate the operation successfully prevented potential state financial losses of Rp1,254,945,000, caused by the illegal diversion of subsidized fuel and LPG intended for eligible consumers.

The suspects have been charged under Article 55 of Indonesia’s Oil and Gas Law No. 22 of 2001, as amended by Law No. 6 of 2023 and adjusted under Law No. 1 of 2026 on Criminal Penalty Adjustments. They face a maximum sentence of six years in prison and fines of up to Rp500 million.

Bali Police Chief Inspector General Daniel Adityajaya reaffirmed the force’s commitment to combating crimes involving subsidized commodities and natural resources.

“Bali Police remain fully committed to taking firm legal action against all crimes involving subsidized goods and natural resources. These illegal practices not only cause financial losses to the state but also harm public welfare, disrupt the proper distribution of government subsidies, and damage the environment. I firmly state that there is no safe haven for anyone committing such crimes within Bali’s jurisdiction,” he said.

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