As the Rupiah Weakens, Indonesia’s Business Elite Is Urged to Shelter in Gold

JAKARTA, Investortrust.id — The Indonesian Chamber of Commerce and Industry (Kadin) urged business leaders Wednesday, Aug. 12, 2026, to reallocate capital into gold assets to shield corporate balance sheets against a rallying U.S. dollar and a depreciating local currency.

Speaking at an industry forum at Gade Tower in Jakarta, Kadin Vice Chairman for Organizational Affairs Taufan Eko Nugroho Rotorasiko advised companies to move beyond cash-only treasury strategies. The warning coincided with the Indonesian rupiah slipping 0.07% to Rp 17,873 per dollar ($1.12), mirroring broader currency pressure across Asian markets.

"I am thinking about our fellow business owners and how they can safeguard their capital," Taufan said Wednesday, Aug. 12, 2026. "Do not just hold rupiah or other fiat currencies—hold gold."

The push highlights a structural shift in how Southeast Asia's largest economy manages corporate liquidity amid persistent exchange-rate volatility. As currency depreciation threatens corporate margins and increases import costs, business groups and financial regulators are attempting to convert traditional household gold hoardings into a formal, liquid financial buffer capable of stabilizing the national economy.

A Strategic Alliance for Treasury Reserves

To facilitate the asset migration, Kadin signed a memorandum of understanding on integrated economic empowerment with state-backed pawnshop and bullion operator PT Pegadaian on Wednesday, Aug. 12, 2026. The partnership aims to build a comprehensive gold ecosystem spanning digital savings, gold-backed loans, and corporate financing instruments for both large conglomerates and small-to-medium enterprises.

Taufan suggested that companies consider shifting approximately 10% of their operational cash reserves into gold, characterizing the move as a matter of national interest to prevent corporate capital erosion. Pegadaian currently manages 153.5 metric tons (169.2 short tons) of gold reserves across its pawnbroking, installment, and savings programs, with digital gold savings accounting for over 20 metric tons (22 short tons), according to Pegadaian President Director Damar Latri Setiawan.

Kadin Chairman Anindya N. Bakrie added that the collaboration aims to transform gold from a passive store of value into an active financing tool. "This is not merely about savings, but about investment and direct financing for the business community," Anindya said Wednesday, Aug. 12, 2026.

Capital Markets Join the Rush

The business lobby’s call comes just days after the Indonesia Stock Exchange (IDX) introduced five sharia-compliant gold Exchange-Traded Funds (ETFs) on Monday, Aug. 10, 2026, marking its 49th anniversary since reactivation. The new instruments—issued by asset managers including BRI Manajemen Investasi, Mandiri Manajemen Investasi, Premier Asset Management, Syailendra Capital, and Trimegah Asset Management—allow retail and institutional investors to trade gold-backed securities directly on the exchange floor without managing physical storage.

The regulatory foundation for these instruments was established under Financial Services Authority (OJK) Regulation No. 2 of 2026, paired with Fatwa No. 163 issued by the National Sharia Council of the Indonesian Council of Ulama (DSN-MUI). The funds rely on electronic gold receipts (EGR) registered with the Indonesian Central Securities Depository (KSEI) and backed by physical gold meeting London Bullion Market Association (LBMA) or Indonesian National Standard (SNI) purity levels.

A. Hakam Naja, an economist at the Institute for Development of Economics and Finance (INDEF) Center for Sharia Economic Development, noted that the timing aligns with a rapidly expanding investor base, which surpassed 30.27 million accounts in August 2026. "The arrival of gold ETFs will deepen Indonesia's sharia financial market while expanding investment choices for the public," Hakam Naja said Monday, Aug. 10, 2026. "Instead of relying solely on physical gold, investors now have a practical and liquid capital market instrument traded just like stocks."

Hakam Naja added that building an integrated bullion ecosystem—linking mining, refining, banking, and exchange trading—is critical for regional competitiveness. "Malaysia has traded sharia gold ETFs since 2017 and possesses a mature market," Hakam Naja emphasized, urging tax authorities to ensure clear exemptions from value-added tax (VAT) and Article 22 income tax so the instruments remain competitive alongside traditional securities. "Indonesia cannot afford to lag behind neighboring countries."

Coordinating Minister for Economic Affairs Airlangga Hartarto echoed these sentiment during his keynote address at the bourse on Monday, Aug. 10, 2026. With domestic gold reserves inside Pegadaian’s ecosystem valued at approximately $20 billion, Airlangga argued that Indonesia possesses the fundamental backing to rapidly expand its financial market depth and potentially outpace regional peers such as India, whose gold ETF assets under management stood at $17.5 billion in 2025.

"Gold does not merely add investment choices; it expands overall liquidity," Airlangga said Monday, Aug. 10, 2026, noting that the national economy will require upwards of Rp 7,400 trillion ($465 billion) in total financing in 2026, rising to Rp 9,200 trillion ($578 billion) by 2029. "We must convert our natural resource wealth into modern financial instruments that deepen our domestic capital markets."