Gold Prices Deemed Increasingly Attractive as a Strategic Investment Asset in Indonesia in 2026
JAKARTA – Gold prices are deemed increasingly attractive as a strategic investment asset in Indonesia in 2026. Amid threats of inflation, stock market pressures, and risks of rupiah weakening, gold is said to serve as the strongest value protector for investors.
This was revealed in the latest World Gold Council (WGC) report titled A Strategic Case for Gold for Indonesia, prepared by WGC’s Senior APAC Research Head, Marissa Salim.
The report states that Indonesia’s investment landscape in 2026 will face increasing pressures due to surges in global inflation, Middle East conflicts, widening fiscal deficits, and threats of downgrade to Indonesia’s capital market status by MSCI.
The World Gold Council projects Indonesian inflation to rise from 2% in 2025 to 3.4% this year due to global energy price increases and domestic fiscal pressures.
Amid these conditions, gold stands out as the asset with the most prominent performance. From 2025 to the first quarter of 2026, gold prices in rupiah denomination outperformed most other investment instruments, including domestic stocks and bonds.
“During various crisis periods, gold has consistently been the best hedging asset for Indonesian investors,” the World Gold Council writes in its report.
The World Gold Council highlights how gold preserved Indonesians’ purchasing power during the 1997-1998 Asian Financial Crisis, when the rupiah plummeted by up to 80%.
Bright Prospects for Gold
According to the report, a similar pattern repeats every time there is market pressure and rupiah weakening. Even during the 2008 global crisis, the Covid-19 pandemic, and Federal Reserve interest rate turbulence, gold in rupiah terms continued to outperform the domestic stock market.
In addition to serving as a safe haven, gold is also said to provide stable long-term returns. Over the past 20 years, gold has generated an average return of around 15% per year in rupiah denomination.
The World Gold Council also assesses that adding gold allocation to investment portfolios can enhance risk-adjusted returns while reducing investment volatility. Even a 2.5%-10% gold allocation is deemed capable of strengthening the quality of domestic investor portfolios.
The positive momentum for gold in Indonesia is also supported by regulatory steps. The Financial Services Authority (OJK) is said to have paved the way for the launch of Indonesia’s first physical gold ETF in mid-2026.
Through regulations POJK 5/2023 and POJK 2/2026, gold is now beginning to be permitted as part of institutional investment assets such as insurance companies and mutual funds.
The World Gold Council views this development as opening new investment opportunities while strengthening gold’s position as a strategic asset for Indonesia amid global economic uncertainties.