Two Chinese nationals named suspects in alleged illegal gold mining in North Sulawesi

Indonesia’s Ministry of Forestry has named two Chinese nationals as suspects in an alleged illegal gold mining operation inside a limited production forest in Bolaang Mongondow Regency, North Sulawesi.

The two suspects, identified by their initials CXY and XXL, were named on 28 August 2026 after forestry investigators examined their respective roles in the mining operation in the Sungai Ongkag Limited Production Forest (HPT).

The case is being handled by the Ministry of Forestry’s Forestry Law Enforcement Agency (Gakkum) for the Sulawesi region. Investigators said XXL acted as a field supervisor, while CXY allegedly coordinated the operation.

Investigation began with forestry security operation

The case originated from a forestry security operation conducted by the Bolaang Mongondow and North Bolaang Mongondow Forest Management Unit (KPH) Unit I on 10 July 2026 in the Sungai Ongkag forest area.

Officers found indications of illegal gold mining, including gold leaching tanks and other facilities supporting mining activities.

At the site, officers detained CXY, who was unable to produce valid permits authorising the mining activities.

Investigators subsequently expanded the case to determine the roles of other people involved. On 18 July, officers detained XXL at the same location.

The two suspects were subsequently handed over to the Regional Section III Office in Manado of the Forestry Law Enforcement Agency for the Sulawesi Region to undergo further investigation.

Ali Bahri, head of the Ministry of Forestry’s Forestry Law Enforcement Agency for the Sulawesi Region, said investigators continued developing the case to establish the roles of each person involved.

“After being handled by investigators, the case continued to be developed to determine the role of each party. We will continue to strengthen cooperation with the Forest Management Unit and relevant agencies to protect forest areas from illegal mining activities,” Ali said, according to Antara.

Digital evidence examined in investigation

Investigators also obtained testimony from a digital forensics expert as part of the investigation into CXY’s alleged role.

The expert identified a history of funds being received and transferred through a bank account in CXY’s name. Investigators said the transactions were suspected to have been connected with the operation of the illegal mine.

The funds were allegedly used to pay workers’ wages, rent equipment and purchase materials used in the gold-processing process.

According to investigators, the financial records provided additional information about CXY’s alleged role in coordinating the mining operation.

The authorities have not stated the total value of the transactions identified in the investigation.

Suspects face up to 10 years in prison

Following the examination and case review, CXY and XXL were accused of violating Paragraph 4 of Article 36 point 19 in conjunction with Article 78 paragraph (3) of Law No. 6 of 2023.

The law concerns the enactment of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation into law.

If convicted, the two suspects face a maximum prison sentence of 10 years and a maximum fine of Rp7.5 billion (US$425,500).

The authorities' designation of the two men as suspects marks the latest stage of the investigation. The case remains subject to the Indonesian legal process.

Ministry says illegal mining threatens forest areas

Dwi Januanto Nugroho, director general of the Ministry of Forestry’s Forestry Law Enforcement Agency, said illegal mining in forest areas could damage forests and the environment while occupying areas intended to provide benefits to communities and the state.

“Therefore, our law enforcement efforts are directed at stopping damage to forest areas, protecting the interests of communities, safeguarding state revenue, and ensuring that natural resource management is conducted in an orderly and fair manner,” Januanto said.

He said the ministry would continue strengthening the protection of forest areas against illegal mining through enforcement measures and coordination with regional governments, forest managers, law enforcement agencies and other relevant parties.

Ali also said the ministry would strengthen cooperation with forest management units and related institutions as part of efforts to prevent illegal mining in forest areas.

Background on Sungai Ongkag and limited production forests

Sungai Ongkag is located in Bolaang Mongondow Regency, one of the administrative areas of North Sulawesi province in eastern Indonesia. North Sulawesi occupies the northern part of the island of Sulawesi and includes both mainland and island territories.

Indonesia classifies forests under different management categories. A limited production forest, or Hutan Produksi Terbatas (HPT), is designated for production activities subject to restrictions under the country's forestry regulations.

Mining activities in forest areas are therefore subject to applicable licensing and regulatory requirements. In this case, forestry officers said CXY was unable to show valid documents authorising the mining activity when he was found at the Sungai Ongkag site.

The investigation centres on alleged gold mining without the required permits and the respective roles of the two Chinese nationals in operating the site.

The Ministry of Forestry said it would continue coordinating with local authorities, forest managers and law enforcement agencies to secure forest areas and take action against illegal mining activities.