Criminal Investigation Bureau Raids Gold Shop in Surabaya Over Illegal Mining Money Laundering
The Indonesian National Police’s Criminal Investigation Bureau (Bareskrim) has raided the Semar Gold Shop in the Nganjuk area of East Java in connection with suspected money laundering (TPPU) derived from unlicensed mining operations (PETI).
Director of Special Economic Crimes at Bareskrim, Brigadier General Ade Safri Simanjuntak, stated that investigators conducted searches at three locations on Thursday (19 February).
He explained that the case stems from the development of an illegal gold mining case in West Kalimantan during the 2019-2022 period, which had already been adjudicated by the Pontianak District Court.
“Based on the facts from the investigation of the predicate offence and the trial proceedings, it was established that there existed channels for the shipment of illegal gold and flows of criminal proceeds from unlicensed mining that were directed to several parties,” he said in a written statement.
Ade Safri said the raids yielded evidence in the form of letters and documents, as well as other evidence relating to the collection, processing, and sale of gold from unlicensed mining operations.
He added that a Financial Transaction Reports and Analysis Centre (PPATK) analytical report had also identified suspicious transactions related to domestic gold trading by gold refining companies suspected of using gold sourced from illegal mines.
Ade Safri stressed that his team would not tolerate any illegal mining practices that could potentially cause environmental damage or losses to state wealth.
“This money laundering investigation represents one of the law enforcement approaches whereby business operators who collect, utilise, process and/or refine, or sell minerals of any kind originating from illegal mining will certainly face firm enforcement action,” he said.
Furthermore, Ade Safri said investigators are currently working in cooperation with PPATK to trace the flow of funds in the case.
According to PPATK data, the total value of gold purchase and sale transactions from illegal mining during the 2019-2025 period reached Rp25.8 trillion.
Regarding the modus operandi, Ade Safri explained that the purchase of gold originating from illegal mines was carried out partially or wholly through gold refining companies and export firms.
“It is hoped that the handling of this case will serve as a deterrent to perpetrators of illegal mining crimes, as part of efforts to protect environmental sustainability and prevent state financial leakages,” he concluded.