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View all search resultsRiau Police arrest five over illicit trade of subsidized biodiesel
Authorities said the investigation into the alleged misuse and resale of subsidized biodiesel in Riau began after local fishermen reported difficulties accessing fuel.
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Agriculure Minister Andi Amran Sulaiman pumps B50 biodiesel fuel into a road-test vehicle on Aug. 18, 2024, during a soft launch ceremony marking the use of B50 at PT Jhonlin Agro Raya biodiesel factory in Batulicin, Tanah Bumbu regency, South Kalimantan. Amran said that the B50 trial represented a key step toward achieving national food sufficiency and energy independence. (Courtesy of Agriculture Ministry/-)
T
he Riau Police have detained several individuals accused of stockpiling and illicitly trading thousands of liters of subsidized biodiesel as authorities widen a crackdown on illegal fuel distribution networks.
Riau Police special crimes division Head Sr. Comr. Ade Kuncoro said the crackdown underscored the authorities’ commitment to ensuring subsidized fuel reaches its intended recipients.
“Subsidized fuel is a public right, particularly for those in need. It must not be misused for illicit commercial gain,” he said on Wednesday.
He said the suspects were arrested in three separate cases uncovered since the start of the month.
The first case was uncovered at a motorcycle repair shop in Pangkalan Kerinci district, Pelalawan regency, where officers seized 5,000 liters of illicit biodiesel on April 4.
“In this case, we have named one suspect, identified by the initials ANM, who acted as a buyer, collector and distributor of illegal fuel,” Ade said.
He explained that ANM bought subsidized biodiesel for Rp280,000 (US$16.39) per 33-liter jerry can from middlemen who obtained it from gas stations using trucks, then stockpiled it for resale at Rp290,000 to Rp300,000 per jerry can. Although the margin per unit was small, it became significant at scale.
