Indonesia investigates suspected diversion of subsidised fuel to industry
Authorities are examining a Semarang case involving reports of 406,000 litres of B50 diesel being transported illegally by an oil barge.
Indonesia has found signs that subsidised fuel is being diverted to industrial users, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said. Authorities are investigating a case off Semarang, Central Java, alongside concerns about ineligible vehicles obtaining the fuel on land.
Speaking at the Energy and Mineral Resources Ministry in Jakarta, Lahadalia said its Directorate General of Law Enforcement had worked with the Indonesian Navy on the Semarang case. He also serves as energy and mineral resources minister.
His remarks followed reports that the self-propelled oil barge NURFAIZAH 03 had illegally carried 406,000 litres of B50 diesel off Tanjung Emas, Semarang. A naval inspection on September 15, 2026, uncovered the case.
Semarang Naval Base V subsequently passed the matter to the ministry for investigation and legal enforcement. The ministry said its inquiry aimed to uphold fuel distribution rules and safeguard supplies for the public.
Lahadalia said misuse was not confined to maritime transport, citing heavy-duty trucks among vehicles obtaining subsidised fuel despite being ineligible. During a recent visit to Kalimantan, he said, he saw vehicles used in mining and plantations waiting in queues for subsidised fuel.
