Customs: Gold Smuggling Mirrors Drug Trafficking

Gold smuggling appears to be on the rise in Indonesia, mirroring trends seen in the drug trafficking industry, according to officials at the country's Customs Directorate-General. In the first eight months of 2026, the agency thwarted 26 gold smuggling attempts at various airports nationwide, marking a notable increase in such cases compared to previous periods.

The smuggling methods employed by criminals are increasingly sophisticated, with some turning gold into powder and dissolving it into a gel, while others attempt to conceal it within their own bodies. These tactics bear a striking resemblance to the methods used by drug couriers, further drawing parallels between the two illicit activities.

Hengky Tomuan Parlindungan Aritonang, Chief of the Soekarno-Hatta Airport Main Customs Directorate General Service Office, explained that the gold smuggling operations follow patterns akin to those of drug-trafficking networks. Both illicit activities utilize a disconnected cell structure, suggesting a complex organization behind these criminal enterprises.

The surge in gold smuggling began in January 2026, coinciding with the implementation of Finance Minister Regulation No. 80/2025, which imposed an export duty on gold. Following the regulation's enforcement, many companies that had previously exported gold reportedly discontinued their activities. This prompted customs officials to investigate whether these entities might have shifted their operations to alternative channels, leading to the discovery of more gold smuggling cases.