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Jakarta Post

Gemstone craze opens up questions on control

For Hartawan, an employee of a private firm in Jakarta, hunting for gemstones, popularly known as akik, at expos or small shops, has been his routine since falling in love with the precious stones last year

Linda Yulisman (The Jakarta Post)
Jakarta
Sat, April 25, 2015

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Gemstone craze opens up questions on control

F

or Hartawan, an employee of a private firm in Jakarta, hunting for gemstones, popularly known as akik, at expos or small shops, has been his routine since falling in love with the precious stones last year.

The 49-year-old man now carries 12 gemstones in his pocket, believing them to be a source of power.

'€œI feel wearing gemstones enhances my performance and boosts my confidence,'€ he said on the sidelines of a gemstone expo at the Industry Ministry offices recently.

One of his favorites, bacan, originates in the Halmahera Islands of North Maluku. Bacan gained popularity after it was presented as a souvenir to US President Barack Obama by former president Susilo Bambang Yudhoyono.

The gemstone frenzy has caught many local administrations off guard, with illegal mining and exploitation becoming widespread and creating environmental hazards. Last week, three gemstone miners died of asphyxiation after becoming trapped in an illegal mining well in North Nias, North Sumatra.

No concrete measures have yet been taken to address the social and environmental problems, but the government is starting to consider controls on skyrocketing prices, which for choice stones can stretch into the hundreds of millions of rupiah.

Agung Setiawan, a gemstone vendor, said he would sell his red amber gemstone, which resembles the mascot of the ruling Indonesian Democratic Party of Struggle'€™s (PDI-P), for no less than Rp 1 billion (US$77,196).

'€œThe price is very high because it carries unique artistic value. Besides, it'€™s very rare to see such an amber,'€ said Agung, who is a furniture maker. He began collecting gemstones back in 2000.

Among those lining up to see Agung'€™s gemstone were former vice president Try Sutrisno, Hanura Party chair Wiranto and Industry Minister Saleh Husin. Given the soaring costs, Saleh said the government was considering imposing a luxury-goods tax on expensive gemstone sales.

'€œWe really need to impose the tax. Otherwise, prices could rise uncontrollably,'€ Saleh said.

According to the plan, gemstones selling for more than Rp 1 million would be taxed at 5 percent, while those under Rp 1 million would be taxed at between 0.5 percent and 1.5 percent. Despite the recent frenzy, no official figures are available on the total value of gemstone sales. However, some have calculated sales at the country'€™s largest gemstone center in Rawabening, Jatinegara, East Jakarta, could reach between Rp 5 billion and Rp 10 billion a day.

As the trend continues, so will gemstone exploitation. Madyudin, a gemstone trader from Parungsari village, Sajira subdistrict, Lebak Regency, Banten, said residents were returning to quarries mined by the Dutch in the colonial era, when gemstones were mined for export.

'€œSome of our sites are located in former excavation areas of the Dutch era. Now, there are countless holes in Sajira,'€ he said.

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