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🇮🇩 Indonesia /Economy & Trade

Indonesian government clarifies 'gold under the pillow' is a metaphor for public holdings

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The Indonesian government clarified that the term "gold under the pillow" is a metaphor for the public's estimated 1,800 tons of gold holdings.
  • This gold is accumulated over generations and often stored privately, not literally kept under pillows.
  • The government sees this potential asset as an opportunity for developing the national bullion ecosystem, encouraging its use in financial instruments.

Indonesia's Coordinating Ministry for Economic Affairs has clarified the popular phrase "gold under the pillow," stating it is a metaphor for the substantial estimated 1,800 tons of gold held by the public, valued at approximately $252 billion.

The term is not meant literally as gold that is physically found under people's pillows.

— Haryo LimansetoThe spokesperson for the Coordinating Ministry for Economic Affairs clarified the meaning of the phrase 'gold under the pillow'.

Spokesperson Haryo Limanseto explained that the term represents gold accumulated over many years and across generations, often stored privately within households. He emphasized that it is not meant to be taken literally as physical gold found beneath pillows. Traditionally, gold has served as a significant store of value for Indonesians, and this figure reflects privately held assets, distinct from national gold reserves.

If a portion of the public's gold potential, for example around 20 percent, can enter financial instruments through the bullion ecosystem, it will have a positive impact on the development of the bullion market and the national economy.

— Haryo LimansetoThe spokesperson explained the potential economic benefits of integrating private gold holdings into financial instruments.

The government views this vast potential private gold ownership as an opportunity to develop Indonesia's national bullion ecosystem. Limanseto illustrated that if even a portion, such as 20 percent, of this privately held gold were integrated into financial instruments through the bullion ecosystem, it could positively impact the national bullion market and economy. However, he stressed that this is merely an illustration of potential and not an obligation for the public to divest their gold holdings. The government maintains that the ownership and decisions regarding gold remain entirely with the public.

Ownership and the public's decision to store, trade, or utilize gold remain the public's right entirely.

— Haryo LimansetoThe spokesperson reassured the public that their ownership of gold is not being threatened by the government's initiative.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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