Bali, Indonesia Sentinel — A joint team from Indonesia’s National Police Criminal Investigation Agency (Bareskrim Polri) and the Bali Regional Police has uncovered a syndicate involved in adulterating subsidized 3-kilogram (kg) liquefied petroleum gas (LPG). Authorities arrested four suspects identified as BC, BK, MS, and KS in Banjar Geria Kutri, Singapadu Tengah Village, Sukawati District, Gianyar, Bali.
Brigadier General Nunung Syaifuddin, Director of the Special Economic Crimes Unit at Bareskrim Polri, stated that the arrests were made following reports from the public. According to police findings, the syndicate operation generated approximately Rp3.3 billion ($212,000) in profits over four months by selling the adulterated LPG gas.
“Based on financial records we seized at the scene, they had been carrying out this operation for about four months, selling 100 refilled 12-kg and 30-kg cylinders per month,” Nunung said at a press conference held at the illegal LPG refilling facility in Singapadu Tengah Village on Tuesday (March 11, 2025).
Syndicate Operation Scheme
Nunung explained that BC was the owner of the operation, assisted by three employees: BK, MS, and KS. BC purchased subsidized 3-kg LPG cylinders from retailers, while BK and MS handled the refilling process. They used iron pipes to transfer gas from 3-kg cylinders into 12-kg and 50-kg cylinders.
To refill a 12-kg cylinder, the suspects required four 3-kg cylinders. Meanwhile, filling a 50-kg cylinder required 18 smaller cylinders. BC and his employees purchased subsidized 3-kg LPG cylinders daily and stored them at the refilling facility before redistribution.
“They collected 3-kg gas cylinders from small retailers, purchasing them individually and transporting them in a pickup truck. This was done daily, and the cylinders were gathered at their warehouse,” Nunung added.
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To ensure the weight matched standard LPG cylinders, the syndicate used digital scales before distributing the refilled cylinders. KS was responsible for delivering the 12-kg and 50-kg LPG cylinders to customers.
Once emptied, the 3-kg cylinders were retrieved and exchanged for full ones to continue the operation. KS received a wage of Rp1,500 ($0.10) per cylinder, amounting to around Rp1.2 million ($77) per month.
The syndicate primarily targeted small businesses such as food stalls and laundromats in Gianyar. The adulterated 12-kg LPG cylinders were sold for between Rp171,000 and Rp180,000 ($11-$12) each, while the 50-kg cylinders were priced between Rp670,000 and Rp750,000 ($44-$49) per unit.
Legal Consequences
Four suspect of the LPG syndicate in Bali, involved in adulterating gas cylinder have been arrested. During the raid, police confiscated thousands of LPG cylinders in various sizes (3 kg, 12 kg, and 50 kg), as well as pipes, digital scales, financial records, a pickup truck, and a transport truck used to facilitate the illicit operation.
The suspects have been charged under Article 55 of Law No. 22 of 2021 on Oil and Gas, as amended by Article 40, Section 9 of Law No. 6 of 2023, which ratifies the Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation. If convicted, they face a maximum prison sentence of six years and fines of up to Rp60 billion ($3.85 million).
Authorities have pledged to crack down on similar illegal LPG refilling businesses syndicate, emphasizing the potential safety risks and financial losses incurred by the government due to subsidy fraud.
(Raidi/Agung)
