Finance Minister Suspects Illegal Mines Supply Gold Smuggling Rings

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, strongly suspects that illegal gold mining operations are the primary suppliers for syndicates smuggling gold out of the country. His comments came after customs officials seized 23.793 kilograms of gold, valued at approximately Rp 100 billion ($6.3 million), at Soekarno-Hatta Airport in Tangerang, Banten.

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The case is strongly suspected to be linked to illegal gold mining (PETI).

"The case is strongly suspected to be linked to illegal gold mining (PETI)," Purbaya stated at the scene. He explained that government fiscal policies have disrupted the operations of these illegal enterprises, leading to a surge in gold smuggling from Indonesia. "Previously, it wasn't that rampant, but now it is rampant because there are additional incentives for those who take it out without paying," he added.

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Previously, it wasn't that rampant, but now it is rampant because there are additional incentives for those who take it out without paying.

The Ministry of Finance is committed to strengthening export regulations. Purbaya announced collaboration with port authorities to enhance surveillance at all exit points across Indonesia. A thorough investigation is underway to identify the masterminds behind the gold smuggling network. "Authorities will continue to research and investigate who the 'kingpins' are behind these activities," he said, aiming to sever the supply chain of illegal gold that harms the state.

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Authorities will continue to research and investigate who the 'kingpins' are behind these activities.

National Police's Directorate of Special Economic Crimes, represented by Brigadier General Mohammad Irhamni, affirmed a full commitment to resolving the case. The police will follow up on potential further criminal acts, both upstream and downstream, working with Customs as the front line of customs violation enforcement. "As long as there is illegal mining activity, smuggling networks will continue to modify their modus operandi to get gold out of Indonesian territory. Illegal mining is certainly closely related to smuggling," Irhamni stated. Enhanced security measures at strategic exit points like airports will be implemented through cross-sectoral synergy with the Directorate General of Customs and Excise and the Ministry of Energy and Mineral Resources.

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As long as there is illegal mining activity, smuggling networks will continue to modify their modus operandi to get gold out of Indonesian territory. Illegal mining is certainly closely related to smuggling.