JAKARTA — Two Indian nationals have been arrested in North Jakarta over an alleged illegal gold-smuggling operation that police say could process up to 30 kilograms of gold a day and had links to a suspected smuggling route to Dubai.
The two were arrested early Sunday, Aug. 16, during raids on two apartments believed to have been used to store and process gold.
Police found about 2.5 kilograms of gold in a safe at one of the apartments, including two gold bars weighing around 1 kilogram each and a 500-gram gold ring.
At the second location, investigators found what they believe was a facility used to process gold before it was allegedly smuggled overseas.
Police also found 18 pieces of white metal weighing a combined 18 kilograms. Investigators described the material as residue from the gold-processing operation.
Brig. Gen. Mohammad Irhamni, director of the National Police’s Criminal Investigation Agency’s Special Crimes Directorate, said the residue suggested that a much larger amount of gold may have passed through the operation.
“This is only the residue,” Irhamni said, adding that the amount of pure gold allegedly smuggled could be several times greater.
Police have not established how much gold was actually processed or smuggled by the network.
The two Indian nationals, whose identities have not been released, had been in Indonesia for about two months, Irhamni said.
They entered the country using passports and immigration documents linked to investment or trading activities, according to police.
Investigators also seized cash in Indonesian rupiah and US dollars, as well as equipment allegedly used to process the gold.
A 30-Kilogram-a-Day Operation
Police believe the network had the capacity to process as much as 30 kilograms of gold a day.
At a gold price of around Rp2.6 million ($145) per gram, that volume would be worth roughly Rp78 billion a day.
If sustained for a month, the potential value would be about Rp2.3 trillion.
That figure represents the operation’s estimated processing capacity, however, not an amount police have confirmed was actually smuggled out of Indonesia.
Investigators are tracing the source of the gold and how it moved through the network before allegedly being sent overseas.
Irhamni said the investigation was also examining illegal mining activities further up the supply chain, with police seeking to trace the material from mining sites through processing and eventual export.
Police suspect some illegally mined gold was brought to Jakarta, processed and then prepared for shipment overseas.
The group uncovered in the latest operation is believed to be one of several networks being investigated over suspected gold-smuggling routes to Dubai.
“This is one group, and this is still the Dubai group. There are other groups that we are also pursuing,” Irhamni said.
Police have mapped other individuals and groups suspected of operating similar networks as the investigation continues.
What Happens to the Two Indians?
The two Indian nationals will be questioned further before police decide whether to pursue criminal charges, detention or immigration action.
Authorities will also coordinate with the Indian Embassy in Jakarta, Irhamni said.
“For the Indian nationals, we will first conduct an examination. We will then coordinate with the Indian Embassy,” he said.
Police have not yet announced whether the two will face prosecution in Indonesia or be deported.
Indonesian nationals suspected of involvement in the network are also being pursued as investigators work to uncover the wider operation.
The investigation is ongoing, and police have yet to determine the total volume and value of gold allegedly moved through the network.
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