Alice Guo, the former mayor of Bamban, was arrested close to midnight on Sept 3 inside a house in Tangerang City in the Greater Jakarta area, following her controversial escape from the Philippines in July amid investigations into her alleged links to Chinese criminal syndicates.
Philippine Justice Secretary Jesus Crispin Remulla announced that Indonesia has said it would turn Guo over to the Philippines in exchange for Australian drug kingpin Gregor Haas, who was arrested in Manila in May and is one of Jakarta's most wanted drug fugitives.
The Philippines' National Bureau of Investigation director Jaime Santiago said the authorities are hoping to take Guo back to Manila as early as Sept 5.
She will then face the Philippine Senate for questioning.
Senators issued an arrest warrant for Guo on July 13 after she refused to appear before the Senate in relation to a probe into her alleged involvement in the country's controversial online casino industry, or Philippine offshore gaming operators (Pogos).
The Philippine authorities say these online casinos have lured foreign workers, including Chinese nationals, with promises of legal jobs in the country, only to trick them into working for scam hubs.
President Ferdinand Marcos Jr banned Pogos on July 22 following public outrage over the illegal activities.
Guo's case has captivated the nation's attention at a time when tensions between Manila and Beijing are rising over their South China Sea disputes.
"Alice Guo has nowhere else to go, and we will not stop until those who helped her escape are arrested too," Senator Risa Hontiveros told reporters on Sept 4.
She has been leading the senate investigation on Guo since May.
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