Indonesian households are holding an estimated 1,800 tonnes of gold outside the formal financial system, according to a report by Kompas.com. The hoard, described as being kept "under the pillow," is valued at approximately Rp4,474 trillion.
The figure was reported on Sunday, August 23, 2026, and has drawn attention from economists and policymakers. The gold is held directly by individuals rather than through banks or investment funds, making it a significant but largely untapped store of wealth.
Economists quoted by Kumparan.com have commented on the scale of these savings, noting the potential implications for the national economy. The sheer volume of gold held by households is comparable to the reserves of major economies, with CNBC Indonesia suggesting the amount could rival holdings in China.
The Indonesian government is now looking to channel some of this idle wealth into the formal economy. Airlangga, a senior official, has called for at least 20 percent of the "under the pillow" gold to be brought into the country's bullion ecosystem, according to ANTARA News. Such a move would allow the metal to be used for lending, collateral, and other financial activities.
The push comes as the Indonesian Bullion Market Association (IBMA) has been formed, a development that analysts at Kontan.co.id say could benefit gold producers such as ANTM, HRTA, and BRMS. These companies are expected to gain from increased formal trading and processing of gold.
The key question now is whether households will respond to government incentives and move their gold into the banking system. If even a fraction of the 1,800 tonnes is mobilized, it could provide a substantial boost to Indonesia's financial markets.
