Fuel Management System as a Diagnostic Control Instrument for Fuel Cost Control: A Case Study at a Coal Mining Company in East Kalimantan, Indonesia

ABSTRACT: This study analyzes the implementation of a Fuel Management System (FMS) as an instrument supporting diagnostic control in fuel cost management at a mining services company in East Kalimantan, Indonesia, referred to here as “Mining Company X” to preserve its confidentiality. Fuel is one of the largest cost components in mining operations, yet manual recording practices often produce delayed and untraceable information. This study uses a qualitative case study approach at “Mining Company X”. Data were collected through semi-structured interviews with five informants, direct observation, and documentation, and analyzed using the interactive model of Miles, Huberman, and Saldaña. The findings show that FMS has shifted fuel recording from manual to digital, provides actual consumption data that supports monitoring, and enables the identification, verification, and follow-up of variances between actual and standard fuel consumption. FMS is positioned as a technology-based instrument that supports diagnostic control within the Levers of Control framework, rather than as a control mechanism in itself. This study does not, however, provide quantitative evidence of the causal cost savings attributable to FMS implementation.

KEYWORDS : Diagnostic Control, Fuel Cost Control, Fuel Management System, Levers of Control, Management Control System