August 20, 2026 | 08:58 pm
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia has around 1,800 metric tons of gold sitting idle, with much of it held privately rather than invested through the financial system.
The figure comes from the Indonesia Bullion Market Association (IBMA), which estimates that about 1,800 tons of gold in Indonesia are currently not being used as investment assets.
Airlangga described the gold as being stored “under pillows,” referring to gold held by individuals outside formal financial instruments.
Government Wants Idle Gold Put to Work
Airlangga estimated that the gold held outside the financial system is worth around US$252 billion.
He called for more of the privately held gold to be channeled into bullion banking and other financial instruments, including those offered by state-owned pawnshop company Pegadaian and Bank Syariah Indonesia (BSI).
“So what are the duties of Pegadaian or BSI with this US$252 billion, maybe 20 percent moves from being placed under pillows to being placed in financial instruments or banking instruments at BSI or Pegadaian,” Airlangga said at the launch of the IBMA at BSI Tower in Jakarta on Thursday, August 20, 2026.
The government hopes that moving some of the idle gold into the formal financial system will help unlock its economic value.
Pegadaian, BSI Manage About 170 Tons
Gold holdings managed by financial institutions remain relatively small compared with the estimated 1,800 tons held outside the investment system.
Pegadaian currently manages around 153 tons of gold, while BSI manages approximately 20 tons. Together, the two institutions manage about 170 tons.
Bank Indonesia, meanwhile, holds around 70 tons of gold reserves, according to Airlangga.
Indonesia's Gold Holdings Compared With Other Countries
Airlangga said Indonesia's gold holdings are substantial compared with those of several major economies.
He cited the United States as having around 8,133 tons of gold, while China has approximately 2,331 tons. India, by comparison, has around 880 tons, below Indonesia's estimated stock.
The figures cited by Airlangga refer to different categories of gold holdings, including privately held and institutional stocks, rather than solely official central bank reserves.
Government Pushes Bullion Banking
Airlangga said the government would continue promoting downstream policies in the mining and energy sectors, including the development of Indonesia's bullion industry.
“The President also mentioned in his speech yesterday regarding the bullion bank, so this bullion will become something relied upon in the future, especially to increase the added value of downstream in the mining and energy sectors,” he said.
The establishment of the IBMA is part of the government's broader effort to develop a domestic bullion ecosystem and encourage Indonesians to manage their gold through formal financial channels.
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