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View all search resultsPolice probe Rp 25 trillion money laundering linked to illegal gold mining
The funds were traced through gold shops and refining companies using raw materials from the illegal mine, as well as through gold exporters.
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Gold and silver bars are piled up in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, on Jan. 10, 2025. (Reuters/Angelika Warmuth)
T
he National Police have launched a major investigation into an alleged Rp 25 trillion (US$1.48 billion) money laundering scheme linked to illegal gold mining operations in West Kalimantan.
On Thursday, investigators from the force’s Directorate of Special Crime conducted coordinated raids in three locations in East Java as part of the probe.
Directorate head Brig. Gen. Ade Safri Simanjuntak said the raids targeted two houses in Surabaya and Nganjuk, as well as a jewelry shop in Nganjuk, and were aimed at tracing assets suspected of being linked to the illicit gold trade.
“From the searches at the three locations, investigators seized various pieces of evidence, including letters and documents, electronic devices, cash and gold, all suspected of being linked to the storage and sale of gold from unlicensed mining operations,” he said on Thursday.
Read also: Walhi calls for systemic reform after 19 fatalities linked to illegal gold mining
Ade said the raids came after a court sentenced operators of an illegal gold mine in West Kalimantan, which had been operating between 2019 and 2022 before authorities shut it down.
Dozens were sentenced in the case, though Ade did not provide further details.
Following the court verdict, the Financial Transaction Reports and Analysis Center (PPATK) analyzed the illegal mine’s financial flows and found that trading between 2019 and 2022 had reached a staggering Rp 25.8 trillion.
The funds were traced through gold shops and refining companies using raw materials from the illegal mine, as well as through gold exporters, triggering the money laundering investigation.
“This investigation underscores our commitment to cracking down on all parties involved in illegal mining operations, including those who store, exploit, process, refine or sell unlawfully sourced gold,” Ade said.
Ade said that authorities have so far questioned 37 witnesses in the case, but no suspects have been formally named.
“We will name suspects after we have analyzed and verified all the evidence and witness statements in the case,” Ade said.
The Financial Transaction Reports and Analysis Centre (PPATK) reported that between 2023 and 2025, transactions linked to illegal gold mining nationwide amounted to Rp 185 trillion, warning that the practice is becoming increasingly widespread.
More than Rp 155 trillion of these funds was traced to accounts of companies allegedly owned by major players in the network. Some of the illicit proceeds were also detected flowing abroad through gold exports to countries including Singapore, Thailand and the United States.
The Directorate of Special Crimes at the National Police Criminal Investigation Agency (Bareskrim) mapped 1,517 illegal mining sites across the country in 2025, extracting commodities ranging from gold and tin to coal.
Directorate deputy director Feby Dapot Hutagalung identified North Sumatra as the province with the highest number of illegal mines (396 sites), followed by West Java (314) and South Kalimantan (230), according to Bloomberg Technoz. He added that operations often enjoyed high-level backing.
Read also: PPATK uncovers staggering Rp 992t flowing from illegal gold mining
Soaring global gold prices have fueled a significant expansion of illegal mining operations. The estimated area of illegal gold mining surged from just 366 hectares in 2021 to 7,232 ha in 2023, a nearly 20-fold increase, according to environmental group Auriga Nusantara.
Several provinces, including Riau and West Sumatra, have attempted to legalize certain artisanal gold mines to regulate activity and improve safety. However, environmental groups caution that legalization alone is unlikely to solve the problem and could instead increase environmental damage, increasing the risk of disasters.
