ESDM Ministry to Trace Source of Illegal Gold Export Smuggling

Indonesia's Ministry of Energy and Mineral Resources (ESDM) is launching a comprehensive investigation to trace the supply chain of illegal gold exports, from upstream mining activities to downstream distribution. The ministry aims to uncover the main financiers behind illicit mining operations and scrutinize the legality of these activities.

Sahid Junaidi, secretary of the ESDM Ministry’s Directorate General of Law Enforcement, stated that the investigation would delve into identifying the financiers, acknowledging that mining is a capital-intensive industry. This effort is part of ESDM's law enforcement initiatives. The findings will be linked to Article 161 of Law No. 3 of 2020, which imposes criminal sanctions on individuals or entities involved in storing, transporting, processing, or selling mining products without valid permits.

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We at the ESDM Ministry understand that mining is capital-intensive. Therefore, as part of ESDM law enforcement, we will investigate the financiers involved.

Beyond tracing the distribution and financiers, the government will meticulously examine the legality of mining operations. This includes verifying ownership and the validity of mining business permits, as well as other related licenses. Sahid emphasized that the ESDM would investigate the legality of mining business permits to ensure compliance.

These investigations follow recent enforcement actions by the Directorate General of Customs and Excise (DJBC). Authorities have foiled multiple attempts to smuggle gold through Soekarno-Hatta International Airport. In one instance, over 22 kilograms of gold bars were seized for lacking required customs documents and permits. From January to August 2026, Customs and Excise has thwarted 32 illegal gold export smuggling cases, with the total value of seized gold estimated at Rp846.94 billion.

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So, from the ESDM side, we will examine the legality of the mining business permits.