Why illegal gold mining is becoming a diplomatic concern for China and Indonesia

On January 16, the Chinese Embassy in Indonesia issued a public notice after several Chinese nationals were reportedly detained or suffered losses in disputes linked to illegal gold mining in provinces including Papua, West Kalimantan and Central Sulawesi. The embassy said some cases involved personal injury, financial loss and legal trouble.

Indonesia has strengthened its crackdown on illegal mining as part of efforts to protect the environment, enforce immigration laws and curb criminal activity. Under Indonesian law, foreign nationals are prohibited from engaging in gold exploration, mining, processing or trading in any individual capacity. Violations can result in prison sentences of up to five years and fines of up to 100 billion rupiah (approximately US$6.4 million).

The Chinese Embassy warned its citizens not to be misled by claims that mining operations have “powerful backers” or that local disputes have been “settled.” It described the gold mining sector as highly risky, with complex power dynamics and serious security threats.

“Any foreign citizen involved in these activities is considered to be engaging in illegal gold mining,” the embassy said, adding that such actions can breach mining, immigration, forestry and environmental laws at the same time.

The advisory urged Chinese nationals to strictly comply with Indonesian regulations and avoid all forms of illegal mining, including so-called “private gold mines” or informal cooperative sites. It also warned against involvement in related activities such as transporting or selling illegally mined gold.

Indonesian authorities have stated that the crackdown is necessary to protect local communities and ecosystems, particularly in resource-rich yet fragile regions.