Insignia Consultants | Indonesians rush to gold as rupiah and stocks plunge amid US tariff worries
Indonesians rush to gold as rupiah and stocks plunge amid US tariff worries
JAKARTA, April 9 (Reuters) - Hundreds of Indonesians are flocking to buy gold bars, betting that the precious metal's value could shield them from tougher economic times ahead as the currency and the stock market tumble in South East Asia's largest economy.
Indonesia is among dozens of countries affected by U.S. President Donald Trump's tariffs, which took effect on Wednesday and have sent shockwaves through many economies. The rupiah has already hit historic lows, despite central bank intervention.
While Indonesian authorities and some economists said the tariffs might have limited impact on the country, which relies more on its large domestic market as an economic engine, the risk-off sentiment over the future of its exports to the U.S. in electronics, footwear and clothing has hit financial markets.
While investors dumped stocks, sales at gold store chain Galeri24 tripled to reach over 65 kg each day since stores reopened after a holiday break this week, company director Endah Susiani told Reuters.
At a branch in central Jakarta, clerks worked hours past closing time to tend to nearly 200 customers each day mostly seeking to buy small gold bars of up to 10 grams, sold at a price of about 1,770,000 rupiah ($105) per gram on Wednesday.
