Illegal gold smuggling networks operating in Aceh and West Sumatra

Authorities in Indonesia are investigating widespread illegal gold smuggling networks operating across Aceh and West Sumatra that appear to be funneling resources to international markets.

In Aceh, the arrest of a Chinese national at SIM Banda Aceh Airport for attempting to smuggle 3 kg of gold bars has highlighted systemic issues. Local mining data shows that none of the 27 existing mining business licenses (IUP) have reported official production or sales, despite massive illegal mining activities spanning eight regencies. This lack of oversight allows syndicates to exploit gold through air or land routes, often transiting through Medan to reach neighboring countries.

Similarly, in West Sumatra, police arrested an Indian national involved in the illegal gold trade. Investigations suggest gold from Sijunjung and Solok is being moved toward Malaysia. The suspect reportedly transitioned from purchasing small amounts of gold to acquiring approximately 1 kg of gold bars daily.

Environmental organizations, including Walhi Sumbar, warn that these illegal operations cause severe ecological damage, including deforestation and mercury pollution. In West Sumatra alone, approximately 1,100 hectares of forest have been cleared due to unauthorized mining, which has also resulted in over 50 deaths between 2012 and May 2026. Experts are calling for investigations to move beyond low-level couriers to target the financiers and masterminds behind these transnational supply chains.