Jakarta, ThedailyID — Indonesia’s Coordinating Ministry for Economic Affairs has clarified a statement about an estimated 1,800 tons of gold supposedly being kept “under pillows” by the public.
The ministry said the phrase was not meant literally. Instead, it was a metaphor for gold owned by households and still stored privately at home through traditional means.
Government spokesperson Haryo Limanseto said the 1,800-ton estimate represents accumulated household gold ownership built up over generations.
“Some of this gold is still stored privately or conventionally in households,” Haryo said in an official statement, Tuesday (25/08).
The government estimates Indonesia has around 3,600 tons of gold reserves and produces about 90 tons annually. Household gold holdings are estimated at around 1,800 tons, valued at approximately US$252 billion.
Haryo stressed that the figure is separate from Indonesia’s national mining reserves and should not be considered an addition to official gold reserves.
The government sees household gold ownership as an opportunity to develop Indonesia’s bullion ecosystem. It wants to provide people with more options to manage their gold through secure and integrated financial instruments.
For example, if around 20% of household gold entered financial instruments, Haryo said it could potentially support the development of Indonesia’s bullion market. He stressed, however, that the 20% figure is only an illustration, not an obligation.
The government also said it does not intend to take over or transfer ownership of people’s gold. Decisions to store, trade or use the assets remain with individuals.
The clarification followed Coordinating Economic Minister Airlangga Hartarto’s earlier statement at the launch of the Indonesia Bullion Market Association on August 20.
“The gold under the pillows amounts to 1,800 tons. And if it’s 1,800 tons, its value is extraordinary, at US$252 billion,” Airlangga said, Thursday (20/08).
Airlangga had linked the estimated holdings to the development of Indonesia’s bullion ecosystem and suggested that moving part of privately held gold into financial instruments could accelerate the sector’s growth.
