Asia/Pacific News
Diesel Fuel Smugglers Caught in Indonesia
Indonesian authorities say a ship smuggled 30 tonnes of diesel fuel, transferring it to a Singapore-flagged ship, before being caught Tuesday, Jakarta-based news outlet Tempo Interactive reports.
Djoko Siswanto, director of fuel for the Downstream Regulatory Body Oil and Gas, said the MT Serena, the ship carrying the fuel, belonged to national oil and gas company PT Pertamina and that company personnel were involved in the crime.
Pertamina has disputed the charges, saying it does not own the Serena but leased it from PT SKR.
"The MT Serena is a chartered boat that regularly transports fuel from Terminal to Tanjung to Sambu Fuel Depot in Pontianak," said Ali Mundakir, Pertamina's vice president for corporate communications.
Ali also denied allegations that the smuggled fuel was government subsidised, saying that the diesel belonged to Pertamina when it was stolen.
"The diesel is not subsidised as it was still owned by Pertamina, so this action is very detrimental to the company," he said.
Djoko said the ship was loaded with 3,600 tonnes of diesel when it left Sambu Island and that the smugglers planned to take 600 tonnes.
According to a report by the International Institute for Sustainable Development, Indonesia's fuel subsidies can create a "strong incentive" for smuggling.
"Growing retail price disparity has increased fuel smuggling and illegal selling of subsidised fuel," the report said.
"The downstream oil and Gas Implementing agency (bPh migas) reported that between 10 and 15 percent of the subsidized fuel distributed by the government was illegally sold to industries, particularly at gas stations close to industrial and mining areas."
