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VOL. 7, ISSUE 4 (2025)
Reconstruction of criminal offenses and sanctions for the misuse of subsidized fuel in Indonesia: A justice-based approach
Authors
Doni Irawan, Sri Endah Wahyuningsih, Jawade Hafidz, Ahmed Kheir Osman
Abstract
This study examines the regulation of criminal
offenses and sanctions for the misuse of subsidized fuel in Indonesia within
the framework of a justice-based approach. Fuel subsidies, originally intended
to protect low-income groups, have proven to be highly regressive,
disproportionately benefiting wealthier households while straining public
finances and slowing the transition to renewable energy. Moreover, persistent
misuse through illegal resale, diversion for industrial use, and smuggling
continues despite the severe sanctions prescribed under Law No. 22 of 2001 on
Oil and Gas, which includes imprisonment of up to six years and fines of up to
sixty billion rupiah. Using a doctrinal legal research method, this study
analyzes statutory provisions, constitutional principles, judicial decisions,
and scholarly opinions. The primary legal materials include the 1945
Constitution (Articles 33 and 24C), Law No. 22 of 2001 on Oil and Gas, the Job
Creation Law (Law No. 11 of 2020, GR No. 6/2023), Presidential Regulation No.
104 of 2007, Minister of Energy and Mineral Resources Regulation No. 26 of
2009, Constitutional Court Decision No. 002/PUU-I/2003, and Kupang District
Court Decision No. 123/Pid.Sus-LH/2022/PN Kpg. The findings reveal that
loopholes in regulation, weak supervision, and fragile legal culture contribute
to recurring violations, undermining distributive justice and constitutional
supremacy. The reclassification of licensing violations as administrative
rather than criminal under the Job Creation Law further reduces deterrence.
Accordingly, this study argues for the reconstruction of criminal provisions
and sanctions to strengthen legal certainty, close systemic loopholes, and
ensure that subsidy policies align with the justice-oriented mandate of Article
33 of the 1945 Constitution. Such reconstruction is essential not only to deter
misuse but also to guarantee that fuel subsidies achieve their intended purpose
of promoting prosperity, fairness, and sustainable energy governance.
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Pages:38-43
How to cite this article:
Doni Irawan, Sri Endah Wahyuningsih, Jawade Hafidz, Ahmed Kheir Osman "Reconstruction of criminal offenses and sanctions for the misuse of subsidized fuel in Indonesia: A justice-based approach". International Journal of Law, Policy and Social Review, Vol 7, Issue 4, 2025, Pages 38-43
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