RI gold demand up 264 percent

JAKARTA (JP): The demand for gold in Indonesia reached 40 tons during the third quarter this year, a 264 percent increase compared to the corresponding period last year, the World Gold Council (WGC) said on Thursday.

WGC said in a statement that the 40 ton figure was the country's third quarter record.

"The strong demand for gold in the third quarter in Indonesia was attributable to the stability of local gold prices, which stood at Rp 55,000 (about US$7.80) a gram," said WGC country manager Leo Hadi.

He added that from the 40 ton figure, 34 tons was in the form of jewelry.

The total gold demand in Indonesia in the year to date reached 101 tons. According to WGC, the figure marks a substantial turn around after the WGC posted a negative demand of 54 tons for the whole of 1998.

WGC, an international organization whose task is to monitor and support the world's gold market, said the total demand in countries included in its survey list rose 22 percent to 877 tons in the third quarter. (udi)