Easing of Licensing Aspects Considered Key to Curbing Illegal Mining Activities

Illegal gold mining activities, often accompanied by money laundering to disguise the sale of illicitly mined products, remain a persistent issue.

Legal observer Abdul Fickar Hadjar stated that when handling such cases, law enforcement agencies should consider the impact of legal enforcement on the business world, particularly for small-scale entrepreneurs. He believes that simplifying licensing aspects, which should be provided by both local and central governments—especially for small-scale mining operators—could play a significant role in suppressing the prevalence of illegal mining activities.

“The police also need to encourage the business sector to ensure the economy does not collapse. For cases involving small businesses, the approach could be directed towards compliance with obligations to the state,” Abdul said in a statement on Friday, 3 July 2026. “This is possible as long as legal provisions allow, without undermining the necessary law enforcement processes.”

He cited a similar case currently being handled by the Special Economic Crime Directorate (Dittipideksus) of the Indonesian National Police Criminal Investigation Agency (Bareskrim Polri). Investigators are currently expanding an investigation into alleged illegal mining and money laundering involving two executives of PT Simba Jaya Utama, namely Denny Handoko Bahar and Valenthio Chandra.

Both individuals have been named suspects and detained following examinations in mid-June 2026. Investigators suspect that gold from unauthorised mining is collected and refined through refinery companies, then traded as if it originated from a legitimate source, before the proceeds are allegedly disguised through money laundering.

Abdul noted that the alleged money laundering in this case is fundamentally linked to efforts to disguise the proceeds of crime from the sale of illegally mined gold. “Money laundering arises as an attempt to disguise criminal proceeds. In this case, what is allegedly being disguised are the sales proceeds from illegal gold mining,” he said.

According to him, if the case construction presented by investigators is proven, the pattern involves illegal gold being sold through official channels to make it appear as though it originates from a legal source.