The Case of 3kgs LPG Explosion

7/30/2019 The Case of 3kgs LPG Explosion

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We choose this current ethical issues based onthis reasons :

Massive Chaos. No one defend the people.

People died and the case has widely spread,but there is no appropriate actions taken bythe government and the company.

We love and we care about Indonesia

We are studying business ethics (this is theactions).


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Began in 2006 when international crude oil prices wassignificant increase, forced the Government to providedfor fuel and electricity subsidies Rp 250 trillion ( 1/3 ofAPBN)

Government was forced to reduced the supply of fuel oil

and kerosene in particular, because the biggest subsidiesare used to subsidized kerosene (50% of fuel subsidieswas kerosene)

The Government issued a policy to convert kerosene toLPG. The target is households and micro-businesses.

However, this program raises many cases LPG explosion.

Until July 2010, they have been KILLED 30 people andINJURED 113 people! Despite many obstacles, the Government is targeting the

conversion program using kerosene to gas, completed in2011


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Many 3kgs LPG explode case in Indonesia

The explosion cause major damage and even deaths

People dont know what is the cause of the

explosions and who is responsible for theexplosion

Government also blame each other, did not find aright solutions and actions, the issue had been

running since 2008 and the actions is still minor upuntil know

Indonesian people are afraid to use LPG

Peoples asked to re-convert to kerosene


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Various locations in Indonesia :

Pasuruan , the victim Nurul Arifin died

Malang , the victim Murjito injured

Mojokerto, the victim Suratno & Faridabadly injured

10 explosion in West jakarta (The Jakarta

post) Total 106 explosion in all over Indonesia

(The Jakarta Post)


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Most of the victims were coming from middleto lower class economy that do not know thesafe way to use 3kgs LPG

The doers were identified as : Dealers who sell expired LPG

Dealers who sell LPG without SNI certification

Dealers who refill the gas illegally

Gas accessories sellers (valves, regulators, rubberseals) who did not surpass SNI standard

Several companies that produce the 3kgs LPG


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Litbang KOMPAS, 2008 - 30 July 2010

Cases: 52; Killed: 30; Injuries: 113; House Damage andFire: 338

Pusat Studi Kebijakan Publik, 2008 - 30 July 2010

Cases: 189 (2008: 61 cases; 2009: 50 cases; 2010: 78 cases)

Badan Perlindungan Konsumen Nasional, 2008 - 30 July 2010

Cases: 90; Killed: 22; Injuries: 125;


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The plan procedure were on the right track, unfortunately allministers that in charge not well coordinate in order to get theimplementation done correctly.

to disseminate this program to

the public

Kementrian ESDM

give permission for industrial and materialspecifications including 3 kg LPGcylinders, stoves, regulators and hoses.

KementrianPerindustrian

supervises the LPG cylindersKementrian Tenaga

Kerja danTransmigrasi

Supervise in the market goods and

imported goods.

Kementrian

Perdagangan


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There are lot of cylinders which do not meetthe SNI and not through the quality controlof Pertamina are circulating in the

community. But there is no strict rules andsanctions given to those who have done anillegal act by selling gas cylinder directly tothe public without going through Pertamina.

Also supply hoses and regulators who do notmeet the SNI is not the responsibility ofPertamina, but the Ministry of Commerce.


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Pertamina was pushed to replace all the 3kgLPG in the market. Meanwhile Pertaminablame the lack of coordination from other

minister in the implementation. Pertamina insist to use the 3kg LPG rather

than to re-convert to the kerosene, while thepeople were afraid to use the 3kg LPG and

demonstrate the government to re-use thekerosene that save to use.


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Kementrian ESDM + _

- to disseminate thisprogram to the public

Will increase publicknowledge about LPGand the use of LPG

Will need a very large cost.Considering if the cost tosocialize is Rp.100.000/householder. Totalpopulation in 2010 is 234.2million (source: BPS)If 1 householder = 10 people, thecost will be234.2 million/10*100.000 = 2.3billion

- to socialized thisprogram viatelevision

No need large cost tosocialized

Ineffective because people do notlike to watch ads

- Doing nothing More victims and injures


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Pertamina & Goverment + _

- Stop the program, Makesure all department incharge are do their partbefore continued theprogram

there will be nomore victims

Lower class of society havedifficulty in buying LPG 12kg,while kerosene were scarce anddifficult to obtain

- Stop the program, Makesure all department incharge are do their partbefore continued theprogram. Meanwhile,

pursue the procurement ofkerosene for the lower class

there will be nomore victims

Lower class ofsociety have

alternative

will probably require a longtime to coordinate alldepartment

aim to reduce fuel subsidies

and the APBN is not reached

- Continuing the conversionprogram whatever happens

more victims Reduce fuel subsidies and theAPBN


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PT Pertamina (Persero) is willing to replacethe hose gas (LPG) provided that the owner isa family substandard targets for kerosene to

gas. "Consumers are given the opportunity to buy

a standard hose with a price ex-factorydownload, was assigned to Pertamina.

Consumers are asked to bring proof that he'sconversion program participants and mark thehose," said Deputy Director of Marketing andCommerce Pertamina, Hanung Budya.


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Ask the government to issue clear rules ,that the 3Kgs LPG is not a free goods, that can be traded in thecommunity, which can only distributed by Pertaminaand strong sanctions against those who are found

guilty of violations . To coordinate with the Ministry of Energy to

continue to provide education to the society thatadapted to the culture and customs of society.

To coordinate with the Ministry of Commerce toconduct more stringent oversight of circulationcylinders, hoses and regulators who do not meet thestandard.


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Conducting more stringent controls on SPPBE / SPBE and agents

to comply with the established distribution channels by

Pertamina (received, filled, or buy cylinders through the quality

control of Pertamina) and strong sanctions for those found to

have violated these distribution channels.

In the long term, making Pertamina as the only party to

supervise, distribution, and the socialization and education as a

whole because the number of ministries are involved even more

difficult to control and still their responsibilities throwing

another party.


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Documents

The Case of 3kgs LPG Explosion