Sales of gold jewelry and bullion at Jakarta’s Cikini Gold Center have been sluggish in the lead-up to Lebaran, as rising prices put the precious metal out of reach for many consumers.
Adrian, a shopkeeper specializing in gold bullion at the Cikini Gold Center, stated that the price of gold has surpassed 3 million Indonesian Rupiah per gram. This represents a significant increase, particularly as average incomes have not risen at the same pace.
“The high prices are definitely a factor,” Adrian explained. “Previously, the price for 0.5 grams of gold was around 1.5 million Rupiah. Retail prices are typically a bit higher than purchasing directly from Antam.”
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Despite the slower pace compared to previous years, Adrian noted that purchasing typically peaks in the ten days leading up to Lebaran, suggesting a potential surge in buyers next week.
“We usually spot the biggest rush ten days before Lebaran,” Adrian said. “There’s still a chance for an increase in sales next week.”
He added that many workers receive their Lebaran bonus (THR) during this period, allowing them to allocate funds towards gold purchases. Companies also occasionally purchase small amounts of gold as gifts or rewards for employees.
“Sometimes companies will buy small denominations for THR or as rewards – perhaps six or twelve pieces. These are typically smaller companies, not the large corporations,” he stated.
Kamil, another gold shopkeeper at Cikini Gold Center specializing in jewelry, echoed this sentiment, stating that the highest volume of sales typically occurs one week before Lebaran. He also noted that the center has already seen an increase in foot traffic in recent weeks.
“We should be seeing more activity now, and we have seen an uptick in buyers. The peak will likely be closer to the Lebaran holiday,” Kamil said.
He remains optimistic that visitor numbers will increase, particularly as private sector employees receive their THR, some of which will be used to purchase jewelry before traveling to their hometowns.
“The peak is usually a week before, when people have received their THR, and half of it is used to buy gold to accept home with them when they travel,” Kamil concluded.
(igo/ara)
