High Gold, Antam And Freeport Demand Strengthen Gold Reserves

Freeport gold mine. (Photo: Doc. Antara)

JAKARTA - The increase in world gold prices has also encouraged the enthusiasm of Indonesian people's investment in precious metals. Director of Portfolio and Business Development MIND ID, Dilo Seno Widagdo, said, to answer the surge in demand, MIND ID through Antam and PT Freeport Indonesia (PTFI) continued to strengthen reserves and gold production.

"The need for gold has indeed increased significantly. We continue to strengthen integration so that people's needs can be met from domestic mineral resources," said Dilo, Monday, April 21.

Dilo added that Antam's gold mining age in Pongkor Block is now around three to four years remaining. However, Antam has mapped the potential for new reserves in various areas such as Aceh, North Sumatra, West Java, East Java, Maluku, Papua, to Nusa Tenggara. Some of them are projected to begin realizing in the near future.

Meanwhile, PT Freeport Indonesia has a mining age of around 20 years and currently produces gold of 50 to 60 tons per year through the Precious Metal Refinery (PMR) facility in Gresik.

Reserve expansion is very much needed. We are committed to ensuring that domestic gold needs that reach around 70 tons per year can continue to be met from domestic mineral production," explained Dilo.

Dilo further explained, regarding the high demand for gold, currently central banks in various countries have begun to shift their foreign exchange reserves into gold as a mitigation strategy against global uncertainty. This shift is driving a surge in demand, as well as contributing to rising gold prices in the global and domestic markets.

This trend is also strengthened by the strengthening of the US dollar exchange rate, especially in the period April to July, when it matures in paying foreign debt and distributing dividends from various national corporations.