Investment Ministry Reveals Strategy for Gold Downstreaming

The Ministry of Investment/Investment Coordinating Board (BKPM) has revealed its strategy for domestic gold downstreaming. One of the goals is to expand the utilisation of the precious metal in the manufacturing industry sector.

Deputy for Strategic Investment Downstreaming at BKPM, Heldy Satrya Putera, said the domestic gold strategy aims to ensure that the potential of national gold reserves is not limited to jewellery products and investment instruments, but is also able to supply the needs of high-tech industries.

The government has included gold in the list of priority commodities whose ecosystems must be developed. He emphasised that his party is currently mapping the potential for integration from upstream to end-user industries within the country.

“Gold is also one of the commodities whose downstreaming we are encouraging. Why? Because currently we actually use or utilise gold, process gold, only for one thing: jewellery. Secondly, we process it only for investment needs because we want to store the gold,” he said at the Mindialogue 2026 event in Jakarta, as quoted on Thursday (13/8/2026).

So far, the utilisation of gold in Indonesia is still considered conventional, through jewellery making and as foreign exchange reserves. In fact, according to him, gold has a role as a component in the modern electronics industry, including as a supporting material for semiconductor production.

“Actually, gold is also needed for the electronics industry. For the manufacture of products such as semiconductors, it is also needed, although perhaps not in large quantities compared to other raw materials,” he said.

His party is targeting the availability of all supporting raw materials for downstreaming to be available independently within the country. Guaranteed resource availability is expected to increase the confidence of global investors to build manufacturing facilities, including gold-based ones, in the country.

“We are trying, if possible, to ensure that all the raw materials are available in Indonesia. This is to provide further confidence and certainty to investors that if you build this industry, we can ensure that the raw material needs will be available,” he concluded.