Gold donations to be auctioned

JAKARTA (JP): The government will auction on Tuesday and Wednesday 100.79 kilograms of gold collected from the public during the "I Love Rupiah" campaign earlier this year.

Director General of the State Budget of the Ministry of Finance Darsyah said on Monday that proceeds were expected to reach at least Rp 5.5 billion (US$733,333).

"Proceeds from the auction will be used to help the poor to meet their basic necessities."

The auction will be held at the branch of state-owned pawnbroker Perum Pegadaian on Jl. Kramat Raya, Central Jakarta.

Darsyah said auction lots included 73.78 kg of gold bars, 22.98 kg of miscellaneous gold scrap, 3.26 kg of gold jewelry and 0.77 kg of precious stones.

He said the gold bars and pieces would be auctioned on Tuesday. People interested in participating in Tuesday's auction are required to provide a guarantee bond of Rp 3 billion.

No bond is required for participants in Wednesday's bidding on the jewelry and precious stones.

Darsyah said 73.76 kg of gold currently stored at the central bank were collected from residents of Jakarta and surrounding areas and several institutions in the capital.

The remaining 27.05 kg was donated by members of the public in Aceh, South Sulawesi, Southeast Sulawesi and Bengkulu, he said.

According to Darsyah, the 100.79 kg is part of the 260.7 kg of gold collected during the "I Love Rupiah" campaign, launched in an effort to help the government overcome the monetary crisis.

He said the government had asked provincial administrations to auction the remaining 159.91 kg of gold being kept at the provincial branches of the central bank.

In the campaign, the government also raised Rp 16.95 billion in cash, he said.

The money will be distributed to provincial administrations to help the poor, he said.

Few people will be able to participate in the auction of the gold bars and scraps on Tuesday because of the huge amount of bond required, said a staff member of the Ministry of Finance who asked not to be named.

"Only big gold traders will join the auction," he said.

He estimated more people would join the Wednesday auction. (jun)