Gold certification agency planned

JAKARTA (JP): The government is preparing for the establishment of an accreditation agency which will be authorized to determine the quality of gold products in Indonesia, a minister said.

"People still have varying perceptions about the quality and purity of gold. That is why there should be an authorized agency for gold accreditation," Minister of Industry Tunky Ariwibowo told reporters after opening a seminar on the gold industry yesterday.

He said business people dealing with gold jewelry will be able to obtain certificates stating the quality of their products.

"This will lead to a standardization of the country's bullion industry. The government has not yet decided the form of the agency," he said.

Meanwhile, chairman of the Indonesia chapter of the World Gold Council, Leo Hadi, said gold jewelry produced in Indonesia from different levels of quality have different percentages of purity.

"Some producers make jewelry with gold contents of 60 percent and others with 58 percent," he said.

Leo said such situations create unfair competition among gold producers.

Tunky said the country's gold products are still poorly designed, as compared to those produced by other countries.

"Our designs are often out of date," he said, adding that Indonesia, therefore, needs a vocational school designed to create skillful gold jewelry designers.

If necessary, overseas institutes can be invited to help establish such a school in Indonesia, Tunky was quoted by the Antara news agency as saying.

Leo said that domestic demand for gold is expected to increase from 80 tons in 1993 to 95 tons this year. One kilogram of gold currently costs Rp 27 million (US$12,345).

The country's gold exports reached Rp 317 million last year. During the first six months of this year, exports reached Rp 500 million.(icn)