Gold demand rises, Trade Ministry sets higher gold reference price for first period of September 2026

KUALA LUMPUR, 1 SEPTEMBER 2026 —

Jakarta, August 31, 2026 – Indonesia’s Ministry of Trade has officially raised the export benchmark price for gold to USD 142,154.10 per kilogram for the first period of September 2026, marking a significant 7.87 percent increase from the previous period.

This adjustment, formalized under Ministerial Decree Number 1776 of 2026, reflects a sharp upward trajectory in global precious metals markets that has directly influenced the valuation of Indonesia’s mining exports.

The decision follows a broader surge in gold prices, with the domestic reference price also climbing to USD 4,421.49 per troy ounce, up from USD 4,098.75 per troy ounce in the second period of August 2026. The decree, which governs export duties on mining products, is effective from September 1 to September 14, 2026.

By aligning the export benchmark with these heightened market rates, the government aims to ensure that export duties are calibrated to the current economic reality of the gold market, thereby maintaining fiscal integrity while managing the flow of precious metals out of the country.

Director General of Foreign Trade Tommy Andana attributed the price escalation primarily to a structural imbalance between supply and demand. He stated that the 7.87 percent rise during the data collection period was driven by increasing global demand for gold against a backdrop of relatively limited supply.

Andana emphasized that this scarcity is not an isolated incident but part of a sustained trend where physical availability has failed to keep pace with investor and industrial appetite.

Beyond supply constraints, Andana identified several macroeconomic factors contributing to the bullish sentiment. He cited the depreciation of major world currencies and the decline in bond yields in international markets as key drivers. Additionally, he noted that discussions surrounding potential cuts to benchmark interest rates by several global central banks have provided a positive sentiment for gold prices.

These monetary policy expectations have historically encouraged investors to seek alternative stores of value, further amplifying the upward pressure on gold.

Andana explained that these dynamics have prompted market participants to shift liquidity toward gold, which is widely regarded as a safe haven asset. “These dynamics have driven market players to shift their capital to gold instruments considered as safe havens with a higher level of stability. This has a direct impact on increasing gold demand in the global market,” Andana said.

This reallocation of capital underscores the asset’s role in hedging against global financial uncertainty, a function that has become increasingly prominent in the current economic climate.

The determination of the export benchmark price and reference price is a collaborative process involving multiple government agencies. Andana clarified that the figures are based on data and technical inputs from the Ministry of Energy and Mineral Resources, which references publications from the London Bullion Market Association. The final decision involves coordination with the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and the Ministry of Industry.

“The determination of the HPE and HR gold is done through cross-ministerial and institutional coordination, taking into account information, data, and technical inputs from the relevant ministries and institutions,” Andana added.

For the Malaysian and regional business community, this adjustment signals a strengthening commodity cycle that extends beyond Indonesia’s borders. As a major player in the Southeast Asian mining sector, Malaysia’s gold and mineral industries are closely linked to global pricing mechanisms. The rise in Indonesia’s export benchmark serves as a leading indicator of the broader regional trend, suggesting that export revenues for neighboring nations may also see upward revisions in their respective fiscal periods.

The alignment of Indonesia’s pricing with LBMA standards ensures that regional trade flows remain consistent with international market realities, reducing arbitrage opportunities and stabilizing cross-border trade expectations.

The implementation of Ministerial Decree Number 1776 of 2026 is now in effect, with the full text available through the Ministry of Trade’s legal information system. The next review period will likely see continued scrutiny of global macroeconomic indicators, particularly central bank policies and currency valuations, as these remain the primary determinants of gold’s trajectory.

The sustained high prices indicate that the safe-haven demand is not a transient spike but a persistent feature of the current market structure, influencing investment strategies and export planning across the region.

Related: Ministry of Trade · Tommy Andana · Kuala Lumpur