Global Gold Price Surge Transforms Indonesia's Gold Industry

Rising Global Demand and Strategic Importance

The persistent high global gold prices through the end of 2025 have marked a significant turning point for Indonesia's gold industry as it approaches 2026. The combination of global trends and Indonesia's hilirisasi (downstreaming) policies is transforming gold from a mere hedge asset to a strategic long-term commodity. According to Thendra Crisnanda, Director of Investor Relations at PT Hartadinata Abadi Tbk, the strengthening gold prices reflect structural changes at both global and national levels.

Key Drivers of Gold Price Surge

1. Aggressive Central Bank Purchases: Global central banks continued their large-scale gold buying through end-2025, as reported by World Gold Council and Reuters. Gold is viewed as a protective asset against currency weakening amid rising debt burdens.
2. Monetary Policy Expectations: Expectations of monetary easing have supported gold's appeal as a long-term store of value.
3. Economic and Geopolitical Uncertainties: Ongoing global economic and geopolitical tensions have further boosted gold's attractiveness.

Impact on Indonesia's Gold Industry

The sustained high gold prices are seen as a positive development for Indonesia's gold industry. Thendra Crisnanda noted that the strong demand from central banks and global investors indicates a shift in perspective towards gold as a long-term strategic asset, particularly amid rising debt pressures and economic uncertainties. In the United States, for instance, government debt has been increasing at a rate of about $1 trillion every 100 days in late 2025, equivalent to approximately Rp16,500 trillion, further enhancing gold's appeal as a long-term value store.