Easing of Licensing Aspects Considered Key to Curbing Illegal Mining Activities

Legal expert Abdul Fickar Hadjar stated that the ease of licensing, which should be provided by both local and central governments, particularly for small-scale mining businesses, plays a role in curbing rampant illegal mining activities. He noted that illegal gold mining (PETI) is often accompanied by money laundering (TPPU) to disguise the proceeds of the sale. In handling such cases, Hadjar said law enforcement officials should also consider the impact on the business world to prevent economic downturn. For cases involving small businesses, the approach can be directed towards ensuring compliance with state obligations, as long as it is permitted by legal provisions without compromising the necessary law enforcement process. He cited the ongoing investigation by the Directorate of Special Economic Crimes at Bareskrim Polri, which has named two executives of PT Simba Jaya Utama, Denny Handoko Bahar and Valenthio Chandra, as suspects. They were detained in mid-June 2026. Investigators suspect that gold from illegal mining was collected, refined through a refinery company, and then traded as if it came from a legitimate source, with the proceeds allegedly laundered. Hadjar explained 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.