Inside Bali’s Hidden Drug Empire: Crypto, Chatbots, and Foreign Cartels

written by Agil Maesyiatun Khasnaah

July 18, 2025

Humas BNN/ Head of the National Narcotics Agency (BNN RI) Marthinus Hukom strengthened the “Desa Bersinar” (Drug-Free Village) Program towards a “Drug-Free Bali” during an event held at the Wantilan of Kelan Traditional Village, Badung, Bali, on Tuesday (July 15).

The Head of Indonesia’s National Narcotics Agency (BNN), Commissioner General Marthinus Hukom, disclosed a complex drug trafficking scheme involving foreign nationals operating in Bali. Speaking at a press conference, he stated that the perpetrators utilized advanced digital technologies to distribute narcotics while evading law enforcement detection.

“We found a modus operandi for the distribution of drugs that uses advanced technology,” said Marthinus in front of village heads and residents who attended the launching of Desa Bersinar Program in Wantilan of Kelan Traditional Village, Tuban, Badung Regency on Tuesday, 15th July 2025.

According to Marthinus, foreign nationals linked to these networks have adopted sophisticated tools, such as blockchain technology, to mask financial transactions and movements related to illegal trade. This approach, he said, significantly hampers patrol and surveillance efforts by local authorities.

Use of Digital Platforms and Cryptocurrency in Drug Transactions

The distribution process has become increasingly seamless due to the use of social media platforms. Drug transactions are conducted without any face-to-face interaction between the seller, courier, and buyer. Instead, the narcotics are deposited at predetermined locations, marked with a specific code to facilitate retrieval by buyers.

These transactions are typically completed using cryptocurrency, making the payment trail harder to trace. Marthinus highlighted that this modus has been supported by chatbot services operating on Telegram, which are suspected to be run by individuals from Russia and Ukraine.

“Uniquely, the courier has made zones in Bali. For example, in the Sanur area, Kuta the format is like this. Imagine criminals from outside dividing their operational areas into such zones,” he said.

Bali’s Appeal as a Drug Market

Indonesia faces challenges in drug trafficking from two major international networks: the Golden Triangle (Myanmar, Laos, and Thailand) and the Golden Crescent (Iran, Afghanistan, and Pakistan). The Sinaloa drug cartel from Mexico has even shown signs of expanding in Bali.

Marthinus also noted that Bali’s growing attractiveness as a narcotics market has contributed to the evolution of these criminal operations. Investigations by BNN and the Indonesian National Police recently uncovered both a clandestine laboratory and an indoor marijuana cultivation facility, further confirming the island’s appeal to organized drug syndicates.

As part of their strategy, perpetrators often rent villas or other private properties to be repurposed as production sites or distribution hubs. This method, Marthinus explained, allows them to operate under the guise of standard residential or tourist activity, reducing the risk of exposure.

“A lot of land conversion has occurred in Bali, I don’t forbid that it’s everyone’s right. But remember that we found several clandestine laboratories that are used as a den of drug crimes in Bali,” he said.

Preventive Measures at the Community Level

To counter the growing threat, BNN is promoting the “Desa Bersinar” program, an initiative designed to build awareness and resilience within local communities, particularly among indigenous populations. The program aims to instill values that enable residents to identify and resist drug-related threats in their surroundings.

“We must be able to separate people who come here to travel from people who cover themselves for traveling, even though they are planning crimes. Don’t let the criminals in Bali,” he concludes.

Agil Maesyiatun Khasnaah

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