Indonesians rush to gold as rupiah and stocks plunge amid US tariff worries

Written by Gaatari Sorwio

Jakarta (Reuters) – Hundreds of Indonesians flow to buy gold bars, betting that the value of the precious metal can protect them from the most stringent economic times in the future as the currency and stock market stumbled in the largest economy in Southeast Asia.

Indonesia is among dozens of countries affected by US president Donald Trump’s definitions, which came into effect on Wednesday and sent a shock through many economies. The rupees have already achieved the lowest historical levels, despite the intervention of the central bank.

While the Indonesian authorities and some economists said that the definitions may have a limited impact on the country, which depend more on its large local market as an economic engine, and set a feeling of dangers on the future of its exports to the United States in the field of electronics, shoes and clothes, and struck financial markets.

While investors threw the shares, sales in the Galeri24 gold chain have multiplied three times to reach more than 65 kg every day since the reopens of the stores after a break this week, the company manager Eda Sousiani told Reuters.

In a branch in the center of Jakarta, the writers worked for hours at a time when approximately 200 customers every day seek to buy small golden bars of up to 10 grams, which are sold at a price of about 1,770,000 rupees ($ 105) per gram on Wednesday.

Suhud Syhrani, 35, who works in the IT sector, bought many bars. He said that he had searched for long -term investment options, hoping to buy a house one day, and he was happy that he did not choose to put his money in shares or joint investment funds.

“The stock market has been eliminated,” he said. “Our economy weakens.”

RUPIHAH was the lowest level of $ 16,970 on Wednesday, while the stock market extended losses after exceeding more than 7 % in the previous day, as it moved with the fall in other markets after a resting break for the unique holiday at the beginning of April.

Marketing Director Elvi Rofiqotul HIYAYAH said that Pawn Shop Compry Pegadaian has witnessed customers opening gold gold accounts of 84 kg on Tuesday, a height of about 25 kg a day since a Disease Bank launched on February 26.

PEGADAIAIAN and Galeri24 Part of the Rakyat Indonesia lender bank.

Local media reported that hundreds of people have formed long lines in the gold stores run by Miner Aneka Tambang during holidays with global gold jumping. Gold recorded the highest level of $ 3,167.57 an ounce on April 3, driven by fears of the trade war.

“Now is the era of uncertainty. It is unusual. Because of the trade war, mutual (definitions), there is a tremendous impact on gold prices and people understand this and hope to protect their wealth from inflation,” Elvi said.