Alice Guo, also known as Chinese national Guo Hua Ping, is wanted by the Philippine Senate for refusing to attend a congressional probe on her alleged criminal ties. She has denied the accusations, insisting she is a natural-born Philippine citizen facing "malicious accusations".
"This development has been verified by our counterparts in Immigration, who have confirmed that Ms. Guo is currently in the custody of the Indonesian Police at Jatanras Mabes Polri," the Philippines' Justice Department said in the statement.
Guo was arrested close to midnight on Tuesday in Tangerang City in Jakarta, Indonesia, the department said.
Philippine law enforcement agencies, including the Anti-Money Laundering Council (AMLC), last month jointly filed multiple counts of money laundering against Guo and 35 others before the Department of Justice.
The AMLC has alleged that Guo and her co-conspirators laundered over 100 million pesos ($1.8 million) in proceeds from criminal activities.
Lawyer Stephen David, Guo's counsel on record, did not immediately respond to a request for comment.
Guo, who was removed from office as mayor of Bamban town in Tarlac province, had fled the country in July, travelling to Malaysia and Singapore, then Indonesia in August using her Philippine passport, the Philippine anti-crime agency has said.
A Senate probe began in May after authorities raided a casino in Bamban town in March, uncovering what law enforcement officials said were scams being perpetrated from a facility build on land partially owned by the mayor.
