Indonesians Keep 1,800 Tons of Gold 'Under Pillows', Says Minister

Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, disclosed that the nation possesses approximately 1,800 metric tons of gold in idle reserves, primarily stored at home rather than being invested via the financial system. According to the Indonesia Bullion Market Association (IBMA), this gold is currently unutilized in investments. Hartarto likened the gold holdings to being "under pillows," referring to private ownership of gold outside formal financial instruments.

The total value of the idle gold is estimated at around US$252 billion, prompting the government to urge more of this gold to be invested in bullion banking and other financial instruments. This includes offerings from state-owned pawnshop company Pegadaian and Bank Syariah Indonesia (BSI). Hartarto suggested that around 20 percent of the idle gold could be transitioned from being stored under pillows to being placed in financial instruments at BSI or Pegadaian.

Currently, financial institutions manage roughly 170 tons of the estimated 1,800 tons of idle gold in Indonesia. Pegadaian holds about 153 tons, while BSI manages approximately 20 tons. Bank Indonesia holds around 70 tons of gold reserves. Compared to other major economies, Indonesia's gold holdings are substantial, with the United States possessing around 8,133 tons, China approximately 2,331 tons, and India having around 880 tons.