Indonesia cracks down on illegal diesel subsidy mafia, arrests several suspects

On May 3 2026 a diesel (solar) spill on the Arosbaya‑Bancaran road in Bangkalan, East Java prompted police to investigate a suspected subsidy fraud. Officers discovered a modified Isuzu truck with an 8,000‑liter tank, two larger tanker trucks, several storage tanks and two warehouses in Pamekasan and Krian, Sidoarjo. Five suspects – a driver, an assistant, the alleged owner, a records keeper and a truck supplier – were detained and charged under Indonesia’s amended Oil and Gas Law for illegal transport and sale of subsidised diesel.

A separate operation in Bandar Lampung on May 6 2026 uncovered a similar scheme. Police seized five modified Fuso trucks and arrested a 31‑year‑old suspect. The gang purchased subsidised diesel at Rp 6,800 per litre, siphoned it into trucks, and resold it for Rp 8,500, earning about Rp 1,700 profit per litre. Using multiple licence plates and barcode tricks, they could move up to five tonnes daily. The suspect faces up to six years imprisonment under the same oil‑gas legislation.