Indonesia: Gold Market 2024

Gold Market Size in Indonesia

In 2021, the Indonesian gold market was finally on the rise to reach $X after two years of decline. Overall, consumption showed a significant expansion. As a result, consumption attained the peak level and is likely to continue growth in the immediate term.

Gold Production in Indonesia

In value terms, gold production amounted to $X in 2021 estimated in export price. Overall, the total production indicated moderate growth from 2012 to 2021: its value increased at an average annual rate of +4.0% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production decreased by -1.3% against 2019 indices. The most prominent rate of growth was recorded in 2017 when the production volume increased by 25% against the previous year. Gold production peaked at $X in 2019; afterwards, it flattened through to 2021.

Gold Exports

Exports from Indonesia

After four years of growth, shipments abroad of gold decreased by -73.8% to X tons in 2021. Over the period under review, exports saw a perceptible downturn. The most prominent rate of growth was recorded in 2019 with an increase of 60% against the previous year. The exports peaked at X tons in 2020, and then contracted markedly in the following year.

In value terms, gold exports contracted notably to $X in 2021. In general, exports saw a noticeable decline. The most prominent rate of growth was recorded in 2019 when exports increased by 75% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2020, and then contracted significantly in the following year.

Exports by Country

Singapore (X tons) was the main destination for gold exports from Indonesia, with a 66% share of total exports. Moreover, gold exports to Singapore exceeded the volume sent to the second major destination, Switzerland (X tons), fivefold. The third position in this ranking was taken by Hong Kong SAR (X tons), with an 11% share.

From 2012 to 2021, the average annual growth rate of volume to Singapore stood at +10.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Switzerland (+41.8% per year) and Hong Kong SAR (+10.7% per year).

In value terms, Singapore ($X) remains the key foreign market for gold exports from Indonesia, comprising 66% of total exports. The second position in the ranking was held by Switzerland ($X), with a 14% share of total exports. It was followed by Hong Kong SAR, with an 11% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Singapore amounted to +12.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: Switzerland (+51.2% per year) and Hong Kong SAR (+12.8% per year).

Export Prices by Country

In 2021, the average gold export price amounted to $X per kg, growing by 4.8% against the previous year. Over the period from 2012 to 2021, it increased at an average annual rate of +2.0%. The pace of growth was the most pronounced in 2020 an increase of 23%. The export price peaked in 2021 and is likely to see gradual growth in the near future.

Average prices varied noticeably for the major external markets. In 2021, amid the top suppliers, the countries with the highest prices were Australia ($X per kg) and Switzerland ($X per kg), while the average price for exports to Singapore ($X per kg) and Thailand ($X per kg) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Switzerland (+6.6%), while the prices for the other major destinations experienced more modest paces of growth.

Gold Imports

Imports into Indonesia

In 2021, supplies from abroad of gold increased by 40% to X tons for the first time since 2018, thus ending a two-year declining trend. Over the period under review, imports saw significant growth. The most prominent rate of growth was recorded in 2015 when imports increased by 1,428%. Over the period under review, imports hit record highs at X tons in 2018; however, from 2019 to 2021, imports failed to regain momentum.

In value terms, gold imports soared to $X in 2021. Overall, imports recorded significant growth. The most prominent rate of growth was recorded in 2015 when imports increased by 2,903% against the previous year. Over the period under review, imports hit record highs in 2021 and are likely to see gradual growth in years to come.

Imports by Country

In 2021, Hong Kong SAR (X tons) constituted the largest gold supplier to Indonesia, with a 45% share of total imports. Moreover, gold imports from Hong Kong SAR exceeded the figures recorded by the second-largest supplier, Australia (X tons), twofold. Singapore (X tons) ranked third in terms of total imports with a 17% share.

From 2012 to 2021, the average annual growth rate of volume from Hong Kong SAR stood at +90.4%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (+81.4% per year) and Singapore (+9.6% per year).

In value terms, Hong Kong SAR ($X) constituted the largest supplier of gold to Indonesia, comprising 45% of total imports. The second position in the ranking was taken by Australia ($X), with an 18% share of total imports. It was followed by Singapore, with a 16% share.

From 2012 to 2021, the average annual growth rate of value from Hong Kong SAR amounted to +103.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Australia (+356.0% per year) and Singapore (+40.5% per year).

Import Prices by Country

The average gold import price stood at $X per kg in 2021, almost unchanged from the previous year. Overall, the import price showed a significant increase. The pace of growth was the most pronounced in 2015 an increase of 97% against the previous year. The import price peaked in 2021 and is expected to retain growth in the immediate term.

Average prices varied noticeably amongst the major supplying countries. In 2021, amid the top importers, the highest price was recorded for prices from South Korea ($X per kg) and Hong Kong SAR ($X per kg), while the price for the United States ($X per kg) and Japan ($X per kg) were amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by South Korea (+39.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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