Gold from illegal mining flows as far as overseas markets. The tap\nremains open.<\/p>\n
THIS country has abundant gold mines, but apparently does not always\nknow where its gold ends up. From illegal mining pits, the precious\nmetal flows to collectors, enters processing facilities, and then finds\nits way overseas through unrecorded channels.<\/p>\n
So far this year, the Directorate-General of Customs has uncovered 32\ngold-smuggling cases involving hundreds of billions of rupiah. The\nCriminal Investigation Department of the Indonesian National Police has\nexposed various methods, from concealing gold on people\u2019s bodies and\nturning it into jewelry to flying it out on rented private jets. Several\ncases also indicate suspected access to or involvement by officials.<\/p>\n
Raids on mines, home-based gold-processing operations, and gold\ncollectors have occurred in several regions. Among them are Nganjuk and\nJombang in East Java. In Gunung Botak, Maluku, the government in June\n2026 named 25 suspects in alleged unlicensed mining. Their roles varied,\nfrom providing access to processing the gold.<\/p>\n
This means illegal gold is not simply a matter of people digging up\nthe earth. There are processors, collectors, aggregators, financiers,\nsmugglers, and overseas buyers. The players may change, but the chain\nremains connected. When enforcement operations are repeatedly carried\nout in different places, what emerges is not merely a number of rogue\nplayers, but a black market with many entry points.<\/p>\n
Aceh also deserves attention. Its gold potential is substantial, and\nillegal mining remains rampant. In 2024, police intercepted a\nsand-dredging vessel allegedly used by Chinese nationals to mine gold in\na river basin. Indonesia\u2019s gold resources appear to be more extensive\nthan official reports indicate.<\/p>\n
The losses go beyond state revenue. Illegal gold mining often uses\nmercury, which contaminates soil and rivers. Cyanide is also used in\ncertain processing methods, although it is more expensive. Gold that\nleaves the country through illicit channels carries with it\nenvironmental costs that remain at home.<\/p>\n
The state is not sitting idle. Police and Customs officials continue\nto thwart smuggling and uncover processing and collection sites. Yet the\nsheer number of cases uncovered shows the scale of the problem. Repeated\nenforcement does not necessarily mean the chain has been broken. The\nstate may simply be busy mopping the floor while the tap remains\nopen.<\/p>\n
Gold has strategic value to the economy. Formal trade is important\nfor both revenue and oversight. The government imposes export duties on\ncertain gold products. Illicit channels bypass all of that. The state\nloses revenue as well as control over the movement of its mineral\nwealth.<\/p>\n
For that reason, raids on mines, collectors, processors, and\nsmugglers must not be treated as separate cases. Police need to pursue\nfinanciers and beneficiaries rather than stopping at those carrying the\ngold. Money laundering provisions can be used to trace the flow of funds\nand assets. If the wealth has already moved overseas, cross-border\ncooperation is needed to pursue it.<\/p>\n
The number of enforcement actions is no reason to applaud. Quite the\nopposite, it is a sign that the leakage is widespread. If gold continues\nto seep out through illicit channels, what is lost is not merely gold.\nAlso swept away are state revenue, the environment, and control over the\nwealth beneath the country\u2019s own soil.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/gold-leakage-in-a-mining-nation-1788259905", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }