Revealed! 150 Tonnes of Illegal Gold Circulating in Indonesia
The Ministry of Energy and Mineral Resources (ESDM) has revealed that as much as 150 tonnes of illegal gold are circulating in Indonesia, driven by the massive scale of illegal mining (PETI) within the country.
“It is not just one single spot. Nationally, it is estimated at 150 tonnes, but it is spread all across Indonesia,” said the Director General of Law Enforcement at the Ministry of ESDM, Rilke Jeffri Huwae, during a meeting at the Kalibata Heroes Cemetery.
These remarks were made while Jeffri was explaining the handling of unauthorised mining activities in South Tapanuli (Tapsel), North Sumatra, including areas surrounding the operations of PT Agincourt Resources.
According to him, his office does not specifically calculate how much illegal gold production originates from any particular region, as illegal mining sites are scattered across various locations rather than being concentrated in one area.
Previously, the Indonesia Mining Institute (IMI) noted that approximately 1-20 tonnes of gold are produced annually through illegal mining. In contrast, legal gold production by various companies in Indonesia reaches approximately 160 tonnes per year.
Chairman of the Indonesia Mining Institute, Irwandy Arif, stated that they have heard reports that illegal mining production reaches roughly 120 tonnes per year.
“This is a massive national asset that does not want to pay taxes or contribute to state revenue. As gold demand grows, production will likely increase further, presenting a very strong prospect for our industry,” Irwandy explained during the Gold Outlook 2026.
Citing reports from the Ministry of ESDM, the IMI noted that the majority of illegal mining activities in Indonesia are focused on gold commodities. Consequently, management and supervision efforts need to be specifically directed towards this sector.
“The number of illegal gold mining sites nationwide is recorded at 1,221 locations. However, some provinces also have illegal mining activities for other commodities,” Irwandy emphasised.