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Global gold price spike a new impetus to boost gold production
Gold reserves are included in the above article, which should be implemented with national interests in mind. Based on the Constitutional Court ruling, the “shall be controlled by the State” clause is interpreted as five principles or functions.
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Gold bullion bars are pictured on Aug.5, 2020, after being inspected and polished at the ABC Refinery in Sydney, Australia. (AFP/David Gray)
A
rticle 33 (1) of the 1945 Constitution mandates that Indonesia’s land, water and natural riches shall be controlled by the state and exploited to the greatest benefit of the people.
Gold reserves are included in the above article, which should be implemented with national interests in mind. Based on the Constitutional Court ruling, the “shall be controlled by the State” clause is interpreted as five principles or functions.
The state has a mandate to issue licenses while managing and supervising the related industries to benefit the public.
The local gold price according to Logam Mulia today is Rp 1,195,983 (US$75.31) per gram, marking a huge jump compared to January 2023, when the price was Rp 1,026,000 per gram, and is significantly higher than Rp 970,000 per gram in 2020. The 16 percent increase since January 2023 has provided a lucrative investment opportunity for personal portfolios.
Companies involved in the gold industry will also see an additional upside in 2024 because of rising gold prices.
Indonesia, a mineral resource-rich country, is ranked sixth in the world for its reserves, according to the United States Geological Survey. Identified worldwide economic gold reserves currently stand at 52,000 tonnes. The survey states that Indonesia has 2,600 tonnes of gold reserves. They also described PT Freeport Indonesia as one of the biggest reserve holders in the world.
There were 124 mining licenses (IUP) and 25 Contracts of Work (CoW) issued in 2020, with yearly production based on the 2020 estimation of 65 tonnes of gold.
