Indonesian Political, Business & Finance News

Indonesian gold industry lacks talented designers

Indonesian gold industry lacks talented designers

By Rita A. Widiadana

JAKARTA (JP): No one knows when gold was first discovered, but
it is clear that from ancient times people have prized gold.

Archaeologists discovered gold cups and jewelry, crafted as
early as 3500 B.C, produced by the people of an ancient
civilization at Ur in Mesopotamia (now Iraq). Gold jewelry of the
same period were also found in the tombs of Egyptian pharaohs.
The ancient Egyptians believed that gold was the metal of the
gods, and all gold was the property of the pharaohs.

Like other Asian countries, such as Japan, China and India,
Indonesia has a long tradition of praising this priceless metal.
Possession of this attractive, bright yellow metal has been a
mark of wealth for thousands of years.

History records that Indonesia has crafted remarkable gold
jewelry, household and ceremonial utensils as well as weapons
since the fourth and fifth centuries. A large number of gold
items, including royal crowns, necklaces, medallions and earrings
were discovered at the site of the former Majapahit Kingdom,
which ruled Java and other islands, including Malacca (now
Malaysia), from between the 7th and 14th centuries. Javanese
goldsmiths who served the Mataram kingdom also had amazing skills
in creating a variety of gold jewelry and weapons.

Unfortunately, their incredible talents were not passed on to
their descendants. At present, Indonesia has only a small number
of potential gold designers and manufacturers, which are only
able to meet the demands of domestic clients. Indonesia's gold
industry is facing keen competition from neighbor countries such
as Singapore, Malaysia and Thailand.

In terms of design, Indonesian pieces are left behind those
produced by our nearest neighbors.

Despite the fact that Indonesia produces 100 tons of gold
annually, the country's per capita consumption of gold is lower
than, compared to, other Asian countries.

In I992, Indonesia's per capita consumption was only 0.43 of a
gram, Malaysia was 1.19 grams, Thailand was 1.46 grams, South
Korea was 1.67 grams and Singapore topped with 7.66 grams.

Some gold producers consider that both the quality and design
of Indonesia's gold are still below international standards. This
gloomy fact was revealed during the recent Gold Asia Exhibition
in Singapore.

Many experts believe that Indonesian gold designers and
manufacturers tend to adopt western design concepts rather than
exploring their own traditional patterns.

"Each country should use its traditional concepts in order to
produce specific and unique designs," director of the Geneva-
based World Gold Council for South Asian region, Kitaru Inagaki
said.

Designs

He suggested that Asian gold manufacturers produce different
designs for local and international markets. Asian consumers
prefer delicate and complicated designs, while potential clients
from European, American and other western countries tend to
choose simple lines and practical designs.

Leo Hadi, the gold council's manager for Indonesia, admitted
that the form of gold designs in Indonesia still follows the
taste of local customers.

Indra Tamtono, director of the gold jewelry manufacturer, PT
Itama Raya, complained that up to the present time, domestic gold
producers are not yet able to determine the trend for gold
designs.

"It will be very risky to launch new designs because we do not
know whether those designs will be marketable," Indra explained.

In addition, domestic buyers do not yet appreciate quality
design jewelry. "Beautiful designs do not yet guarantee that the
products will have more value added. What concerns most customers
is the gold carat rather than the design," he explained.

Indonesian citizens, mostly those living in rural areas, buy
gold in the form of jewelry, such as bracelets, necklaces or
earrings, for their own use. Many villagers still consider that
buying pure gold or gold jewelry is much more profitable than
depositing their money in banks.

People buy gold jewelry to beautify themselves, for
investment, as well as to raise their social status, Indra said.

He said local gold producers also face problems in adopting
high technology, especially for the finishing process, he said.

Added to this, Indonesia has only a small number of talented
gold designers. Lack of hi-tech equipment and promising designers
has hampered the local gold industry in developing properly.
These problems have also hindered Indonesian gold producers from
entering the international market.

Leo added that in order to boost the local gold industry, the
gold council is currently seeking ways to improve the quality of
gold designs.

The gold council is conducting a study on Indonesia's
traditional gold designs from the country's 27 provinces. "We
will modify the existing designs to adjust to the demand of both
domestic and international buyers," Leo said.

The gold council has also just organized a nation-wide gold
design competition, to seek out and encourage Indonesia's young
talent and potential gold manufactures to design gold jewelry
with more creativity.

The competition last December, the first of its kind ever held
in the country, was quite encouraging. More than 200 jewelry
designers showed off their skills in creating jewelry that blend
both traditional and modern elements.

Forum

Hendra Dharmawan Hutama, winner of the gold design
competition, said, "It is a good forum for us to improve our
design skills. How can local designers up-grade their talents if
we don't have the opportunity to compare our creations with other
designers?" Hendra said. Hendra is currently a lecturer in the
architectural department of Tarumanagara University.

Prominent fashion and jewelry designer Harry Dharsono, who was
one of the judges, remarked that such a competition should be
held annually.

Dharsono said that many participants tried to present their
best creations. They also worked hard to mix traditional and
modern techniques, although some of the creations still looked
naive. Many designs were also too conventional, not being able to
touch the market demand, Dharsono added.

"But we must encourage these young talents. If we have good
designers, I am optimistic that Indonesia will have a stronger
gold industry, that can compete with other countries," he
asserted.

Good designs, manufacturing and marketing systems have made
Singapore, which is not a gold producer, one of the world's major
gold jewelry exporting countries.

"Why can't Indonesia, which has gold as an abundant natural
resource, compete with our nearest neighbor to become a prominent
gold jewelry exporter ?" Dharsono asked.

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