Surging Demand Leads to Gold Shortage in Indonesia

April 27, 2025 | 05:21 pm

TEMPO.CO, Jakarta - Indonesia experienced a significant increase in gold purchases throughout April 2025. Damar Latri Setiawan, President Director of PT Pegadaian, attributed this surge not to FOMO (Fear of Missing Out) but to growing public awareness of the importance of asset protection amid global economic uncertainty.

"Pegadaian Gold Savings transactions quadrupled in April 2025, jumping from an average of Rp380 billion to Rp1.5 trillion. We are optimistic this will increase tenfold by the end of the month," Damar stated in Jakarta on Saturday, April 19, 2025.

The sharp rise in demand was not limited to digital gold; physical gold also saw a surge. Pegadaian's subsidiary, Galeri24, recorded sales exceeding 250 kilograms of gold bars and 6 kg of gold jewelry between April 8 and 13, 2025. This widespread demand led to gold bar shortages in several regions beyond Jakarta.

Gold Shortage in Malang

Gold shops in Malang, East Java, reported running out of Antam gold stock recently, even when prices briefly surpassed Rp2 million per gram.

As reported by Antara on April 23, 2025, Irwan Khusyaini, a staff member at a gold shop in the Pasar Besar Malang area, noted that the price increase did not deter buyers. "We've been out of Antam stock for about three weeks. Despite the price exceeding Rp2 million, demand remains high," Irwan said on Wednesday, April 23, 2025.

Irwan also anticipated that the subsequent decrease in gold prices would further fuel public demand. "More people are likely looking for Antam, but all stock is currently on order as we await replenishment," he explained.

Gold Shortage in Makassar

Makassar also experienced an Antam gold shortage. TempoTeras.Id reported that a precious metal gold boutique on Jalan Dr Sam Ratulangi displayed out-of-stock signs for various Antam gold sizes and gold jewelry on Tuesday, April 8, 2025.

A surge in gold demand occurred during the holidays, particularly when prices briefly declined, prompting the public to capitalize on the opportunity for investment.

Pegadaian Ready to Meet Demand Surges

In response to the increased demand, Pegadaian assured the availability of gold stocks and the reliability of its digital systems. "Pegadaian has prepared a certain amount of physical gold for transactions," Damar stated.

He believes that the strong public interest in gold reflects confidence in Pegadaian as a state-owned financial institution with extensive experience in the precious metals sector. Pegadaian's advantages in reaching retail investors include its infrastructure, transparent procedures, and nationwide service coverage.

Putri Safira Pitaloka has contributed to the writing of this article

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