Villa Owner Convicted for Consuming Subsidised Fuel

August 26th, 2008

For consuming 800 liters of subsidized fuel, I Made Djaman Setiadi (64 years old) was brought to trial at Denpasar court of law on Monday, August 25th. The general attorney I Ketut Sujaya appealed to board of judges chaired by Judge Nyoman Gede Wirya charged Djaman, the President Director of Taman Wana Villas for violating the 55th article of Indonesian legislation no. 22/2001 on fuel and gas.

The attorney explained that on April 5th, 2008 at 2.30AM, Djaman instructed the witness, his staff in procurement department Made Setiawan, to take 800 liters of fuel from public refueling station owned by another witness, Sriyani. The fuel was then brought in four drums on a light truck to refuels electrical generator of Taman Wana Villas.

Djaman bought the fuel at subsidized consumer price of Rp. 4,300 per liter, which was by far lower than unsubsidized price for industry and other commercial purposes. For his business, Djaman was supposed to buy the fuel from Pertamina’s depot or authorized industrial distributor at commercial unsubsidized price. Commercial price pegged to MOPS (Mid Oil Plats Singapore) and evaluated every two weeks, at the time of incident  was Rp. 9,194. The discrepancy became government lost caused by his conduct.

Traced backward from the time of incident Djaman has been committing his conduct between January and April 2008 and an average of 3,200 liters per month paid in bank draft of BCA. Expert witness explained that Djaman’s conduct in transportation and storage of fuel violated state regulation on oil and gas. Sales on subsidized fuel required official clearance from Pertamina and priced at commercial price of Rp. 9,100. Furthermore, fuel allocated for consumer use is prohibited to be sold for industrial and commercial purposes. Witness Made Setiawan explained that the fuel was consumed by electrical generator for lighting of Taman Wana Villas.

Posted in Law & Regulation |

This entry was posted on Tuesday, August 26th, 2008 at 11:04 pm and is filed under Law & Regulation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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