Denpasar Police Chief Commissioner Leonardo David Simatupang said the arrests followed intensified patrols and public reports of irregularities in the distribution of subsidized energy.
Authorities are investigating five cases in total — two involving diesel fuel and three related to LPG.
Five men, aged 21 to 48, were detained for allegedly exploiting multiple barcodes to repeatedly purchase subsidized diesel at gas stations.
Police said the suspects used vehicles with modified tanks capable of holding up to 3,000 liters.
The fuel was then resold to middlemen at Benoa Port and distributed to local fishermen.
Three suspects, aged 27 to 56, were arrested for siphoning subsidized 3-kilogram LPG cylinders into larger 12- and 50-kilogram cylinders, which were then sold at higher prices.
Investigators estimate profits of about 103,000 rupiah (US$6.50) per cylinder. Several of the suspects were identified as gas depot owners.
Police raided two sites in North and West Denpasar for the diesel cases, and three locations in South Denpasar for the LPG cases.
Seized evidence included 13 repackaged 50-kilogram LPG cylinders, 45 cylinders of 12 kilograms, and 212 cylinders of 3 kilograms, along with trucks, pickup vehicles, and equipment such as hoses and pipes.
Authorities estimate state losses of 294 million rupiah (US$18,500).
The suspects face charges under Indonesia’s Oil and Gas Law, carrying a maximum sentence of six years, and under the Legal Metrology Law, which adds up to six months’ imprisonment.
Police said the investigation is ongoing, with efforts to track down alleged middlemen at Benoa Port.
“This case does not stop with those already detained. We will pursue the wider network,” Simatupang stated.
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Translator: Rolandus Nampu, Aditya Eko Sigit Wicaksono
Editor: Rahmad Nasution
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