Gold Price Surge Hits Indonesia's Local Jewelry Industry

21 hours ago 3

February 15, 2026 | 09:03 am

TEMPO.CO, Jakarta - The Indonesian Ministry of Industry stated that the increase in global gold prices has impacted the local jewelry industry. This increase has prompted entrepreneurs to adjust production.

"The government is aware that the increase in gold prices has impacted production and marketing strategies," said Reni Yanita, Director General of Small, Medium, and Miscellaneous Industries at the Ministry of Industry, in a written statement on Saturday, February 14, 2026.

Reni said that jewelry entrepreneurs are making production adjustments, including changes to designs, gold content, and sales patterns, due to the surge in global precious metal prices.

However, Reni stated that the jewelry sector still has significant potential for growth through design innovation, production efficiency, and market expansion.

Data from the Ministry of Industry indicates that there are more than 500 jewelry businesses and 30,000 gold shops throughout Indonesia. The jewelry industry's export contribution from January to November 2025 was recorded at US$8.47 billion.

Reni stated that the Ministry of Industry held a meeting with representatives of the Indonesian Jewelry Producers Association (APPI) to discuss the impact of gold raw material prices on the jewelry industry.

In the meeting held on January 30, 2026, Reni said, business representatives stated that the increase in gold prices had affected people's purchasing power, prompting businesses to adjust their production. This included producing lighter products, offering attractive designs, and lower gold carats, making them more affordable for consumers.

According to Reni, the meeting emphasized that the labor-intensive jewelry industry requires supportive policies. The goal, Reni explained, is to maintain business and workforce sustainability.

Furthermore, Reni stated that the association believes fiscal policy adjustments are necessary. One approach is to impose a low final income tax (PPh) on transactions at bullion banks, similar to those for stocks and cryptocurrencies. This relief, Reni explained, aims to ensure business activities remain within the official ecosystem and remain competitive.

Responding to the meeting's outcome, Reni encouraged further integration of national gold transactions into the official system by strengthening bullion banks. She hopes this integration will improve liquidity, transparency, optimize state revenues, and open wider access to financing for industry players.

"If gold circulation is incorporated into a structured bullion system, the mechanism will resemble a banking system, and the jewelry industry will be guaranteed raw materials from there," said Reni.

Reni is optimistic that this mechanism will strengthen transparency, increase market confidence, and increase the gold sector's contribution to the national economy.

Meanwhile, Director of Aneka Industri, Reny Meilany, stated that synergy between the upstream and downstream sectors is key to reducing dependence on imports while maximizing the use of domestic gold resources.

Reny stated that the government is optimistic that the national jewelry industry can continue to grow, increase added value, become globally competitive, and contribute significantly to the national economy through job creation, exports, and strengthening the design-based manufacturing industry.

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