Indonesia Jewelry Industry Faces Export Challenges, Domestic Market Drives Optimism
Amid ongoing global geopolitical tensions, Indonesia’s jewelry industry is experiencing export disruptions, particularly to Dubai, one of its key international markets. Despite these challenges, industry leaders remain optimistic about medium-term demand growth.
Eddy Yahya, Director of PT Untung Bersama Sejahtera (UBS) and Chairman of the Indonesian Jewelry Producers Association, emphasized that domestic demand continues to show strong potential.
This statement was delivered during a visit by Ferry Irawan, Deputy for Coordination of State-Owned Enterprises Management and Development, to UBS headquarters on March 31, 2026.
Eddy highlighted that Indonesia has a deeply rooted culture of saving and investing in gold, similar to trends seen in India. This cultural factor is expected to support a recovery in demand as market conditions gradually stabilize.
He also stressed the importance of strengthening domestic supply through the development of bullion business activities. “We hope bullion initiatives can improve the efficiency and competitiveness of gold raw material supply for the industry,” Eddy stated, citing an official release from the Coordinating Ministry for Economic Affairs.
In line with this, the government reaffirmed its commitment to strengthening Indonesia’s integrated gold ecosystem. Ferry noted that efforts will continue to ensure alignment across upstream and downstream sectors, enhancing the overall competitiveness of the national gold industry.
Furthermore, Eddy expressed appreciation for government policies, including the implementation of gold export duties, which are seen as supportive of domestic industry growth.
On the other hand, APPI has also submitted strategic recommendations to the government, particularly regarding tax policy improvements and strengthening the structure of the domestic gold market.