Indonesian Gold Demand Surges by 40 Per Cent in Q2 2026
Domestic demand for gold bars and coins in Indonesia recorded a significant surge of 40 per cent year-on-year in the second quarter of 2026. The latest report from the World Gold Council reveals that total public purchase volumes reached 15 tonnes.
This achievement positions Indonesia as one of the gold investment markets with the strongest growth performance globally. This trend occurs amidst a period of relatively moderate global investment demand.
The weakening of the Rupiah against the US Dollar and concerns regarding the domestic economic outlook are the primary driving factors. The public is turning to gold as a safe-haven instrument for asset protection.
“Indonesia has once again become one of the gold markets with the strongest investment performance globally in the second quarter. Demand for gold bars and coins surged by up to 40% (y/y) even as gold price increases levelled off,” said Shaokai Fan, Head of Asia-Pacific (ex-China) and Global Head of Central Banks at the WGC, in an official statement as quoted from Investor Daily.
Shaokai Fan explained that this phenomenon marks a shift in the mindset of domestic investors. Investors are no longer merely chasing short-term price fluctuation profits.
“This resilient demand reflects a shift in investor behaviour. Rather than simply responding to short-term price fluctuations, more investors in Indonesia are viewing gold as a strategic long-term asset, especially amidst the continued weakening of the Rupiah and uncertainty regarding the domestic economic outlook,” he added.
The government’s strategic move to release the Roadmap for the Development and Strengthening of Bullion Business Activities and Ecosystem also received positive attention. This policy is seen as reinforcing the commitment to strengthening the precious metal-based financial ecosystem at the national level.
“The launch of the Indonesia Bullion Ecosystem Development Roadmap also reflects the growing recognition of the strategic role of gold in the national financial system. Moving forward, we expect that this initiative, supported by strong long-term investment fundamentals, will encourage broader investor participation while opening access to various gold investment products,” said Shaokai Fan.
Globally, the Gold Demand Trends Q2 2026 report noted that total accumulated global gold demand stood at 1,269 tonnes. General gold price movements have begun to stabilise after hitting record highs in early 2026.
Throughout the first half of 2026, accumulated global gold demand increased by 2 per cent year-on-year to 2,522 tonnes. The total transaction value of the global gold market is estimated to have reached US$ 380 billion.