Pertamina Fuel Compounding: Long-Term Effects on the EnergySector National Energy Sector and Community Impact

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Source: https://pontianak.suarakalbar.co.id

Indonesia is one of the developing countries where fuel oil is highly consumed, due to the
high mobility of the population using motorized vehicles in both daily activities and business
and industrial activities. Oil (fuel) companies are considered a productive sector that has
cooperated with other companies and supports the economic ecosystem. Pertamina Patra Niaga
noted that the peak increase in fuel consumption in the Lebaran 2024 homecoming flow for
Gasoline rose 18.1%, Gasoil (Dex Series) fell 26.6%, Avtur rose 10.7%,” said Harsono Budi
at the Closing of the National Posko of the ESDM Sector RAFI at BPH Migas, on Friday
(19/4/2024). Meanwhile, the Ministry of Energy and Mineral Resources (ESDM) estimates
that in 2022 the daily consumption volume will reach 800,000 BBM per day, in September
2022 it is said to reach Rp 1.2 trillion (Kadafi, 2022).
In recent times, Indonesia has been shaken by the case of fuel oil (BBM) smuggling
involving PT Pertamina, which has become a big concern for the public, even various parties,
ranging from the government, energy companies, to the community. This has resulted in an
impact that can concern the continuity of energy supply which is very important for the lives
of Indonesian people. Pertamina’s fuel bootlegging case is an illegal act in which the
individuals involved combine high-quality fuel with fuel that is inferior or does not meet
standards.
On Monday, February 24, 2025 the Attorney General’s Office of the Republic of Indonesia
uncovered a case of suspected corruption in the management of crude oil and refinery products
at PT Pertamina, Subholding, and Cooperation Contractors (KKKS) for the 2018-2023 period
said to have caused State losses in the development of oil exports as well as considerable
consumer losses allegedly due to the crime of copying RON 90 Pertalite oil into RON 92
Pertamax. In this case, it is suspected that consumers have obtained false information due to
the RON 92 Pertamax label that was paid but in fact received the lower RON 90 Pertalite. The
revelation of this case adds to the list of oplosan fuel cases that have occurred in Indonesia.
Pertamina’s fuel bootlegging cases are often revealed after an inspection or intensive
supervision.
The Attorney General’s Office (AGO) revealed that the oil mixing took place at the terminal
or storage of PT Orbit Terminal Merak owned by Kerry Andrianto and Gading Ramadhan
Joedo. This was revealed when the AGO explained the role of two new suspects, namely the
Director of Central Marketing and Commerce of PT Pertamina Patra Niaga, Maya Kusmaya
and VP Trading Operation of PT Pertamina Patra Niaga, Edward Corne.
This case often occurs in situations where demand increases, such as during the holiday
season, or the homecoming flow where individuals can take advantage of this situation to meet
demand illegally such as the pengoplosan on BBM. This can happen because of the lack of
supervision from the government or the authorities, causing these cases to often escape
detection. The government must improve supervision and regulations in the distribution of fuel
and impose strict sanctions on those who are proven to be carrying out pengoplosan.

Source: https://finance.detik.com

The revelation of this case triggered a strong public backlash, with many demanding
transparency and accountability from Pertamina and other related parties. The impact of fuel
bootlegging is enormous, both for the community and the National Energy sector:

  1. Financial Losses for the State
    The fuel bootlegging case has a significant impact on state finances. The Attorney General’s
    Office stated that this abuse of the fuel distribution system leads to the loss of potential tax
    revenues and energy subsidies that should be allocated fairly. Since poor quality fuel can
    damage the engines of vehicles and transportation equipment that rely on it, it can also cause
    the government to spend more money on energy subsidies that are not well-targeted.
  2. Disruption to State Supply
    Fuel bootlegging can destabilize energy supply as many consumers may be forced to seek better fuel sources or switch to other energy products, with indications of consumption leaving Pertamina’s gas stations for private ones. Ultimately, this may lead to supply shortages or reliance on more expensive imports, which will worsen the country’s energy security. In addition, reliance on low-quality fuels will also damage the country’s energy infrastructure.
  3. Impact on Public Health
    Air pollution caused by emissions from motor vehicles using low-quality fuel can be more harmful to the environment and health. These higher emissions from motor vehicles can increase the risk of respiratory diseases, heart disease, and cancer in the community, and improve people’s quality of life. This can increase social inequality, with less well-off people facing the disadvantages of poor fuel and more severe health and economic problems.
  4. Loss of Trust in Government and Energy System
    People’s trust in the national energy system and government policies can be undermined when they learn of fuel bootlegging. This can lead to further doubts about the integrity of the country’s natural resource management and energy provision. If this mistrust is not addressed,there could be further social disruption and problems within the government and energy sector. To reduce their dependence on fossil fuels or reliance on more expensive imports the government should encourage diversification of energy sources by incorporating renewable or more environmentally friendly energy sources.

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Writer: Bela Diana Puspitasari – Physiotherapy’24
Editor: Naufal Ahmad Alfian – Communication Science‘22

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