Jakarta. Indonesia’s gold market remained resilient in 2025, with consumer demand continuing to grow despite record-high prices. The trend also shows a clear shift in buying behavior, as households increasingly favor gold as an investment rather than for jewelry.

Total consumer gold demand in Indonesia reached 48.2 tons last year, up 2% year-on-year. While growth was slightly lower than in some neighboring countries, it remained broadly in line with the global average, according to the World Gold Council (WGC). Demand for gold bars and coins surged 29% to 31.6 tons, driven by a strong need to preserve wealth amid a weakening domestic currency and economic uncertainty, as well as the limited appeal of alternative investment assets during periods of market volatility. 

"This trend underscores gold’s role as a strategic asset in household and retail investment decisions,” said Shaokai Fan, Head of Asia-Pacific (ex-China) and Global Head of Central Banks at the World Gold Council (WGC), at the WGC’s Demand Trends in the Fourth Quarter and Full-Year 2025 event in Jakarta on Wednesday.

Cultural factors continue to support demand. Gold purchases typically increase during festive periods such as Eid al-Fitr, when household liquidity rises due to religious holiday allowances (THR) and gift-giving traditions. Gold is widely used both as a savings tool and a means of transferring wealth, making demand less sensitive to price movements.

“In Indonesia, we are seeing a clear shift toward a more strategic investment mindset,” Shaokai said. “Instead of selling their gold holdings, many consumers are using gold as collateral to access liquidity while still keeping ownership of the asset.”

Globally, total gold demand hit a record 5,002 tons in 2025, driven mainly by investment demand amid geopolitical and economic uncertainty. Investors stepped up purchases of gold bars and coins, with global demand reaching 1,374 tons, equivalent to $154 billion. China and India led the surge, posting year-on-year increases of 28% and 17%, respectively, and together accounting for more than half of global bar and coin demand. 

The precious metal averaged $4,135 per ounce in the fourth quarter of 2025, up 55% from a year earlier. The annual average price also reached a record $3,431 per ounce, a 44% increase from 2024.

High prices, however, weighed on jewelry demand. Globally, gold jewelry consumption fell 18% year-on-year. Indonesia followed a similar pattern, with jewelry demand dropping 27% to 16.6 tons. The decline was largely due to price pressure and reduced purchasing power, rather than a loss of consumer interest in gold.

In value terms, spending on gold jewelry remained strong. Indonesian consumers spent 5% more on jewelry compared with the previous year, reflecting higher prices. To maintain affordability, buyers increasingly turned to lower-purity gold, mostly below 14 karats, allowing them to continue owning gold amid rising living costs.

On the supply side, global gold supply reached a new record, supported by mine production of 3,672 tons and a modest 3% increase in recycling. Despite elevated prices, recycling volumes remained limited as many investors chose to hold onto their gold, showing confidence in its long-term value.

The WGC also noted growing interest in digital gold products, particularly among younger consumers. With more platforms entering the market and continued technological development, digital gold is expected to play a larger role in the future.