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

By Gayatri Suroyo

JAKARTA (Reuters) - Hundreds of Indonesians are flocking to bargain golden bars, betting that the precious metal's worth could shield them from tougher economical times up arsenic the currency and the banal marketplace tumble successful South East Asia's largest economy.

Indonesia is among dozens of countries affected by U.S. President Donald Trump's tariffs, which took effect connected Wednesday and person sent shockwaves done galore economies. The rupiah has already deed historical lows, contempt cardinal slope intervention.

While Indonesian authorities and immoderate economists said the tariffs mightiness person constricted interaction connected the country, which relies much connected its ample home marketplace arsenic an economical engine, the risk-off sentiment implicit the aboriginal of its exports to the U.S. successful electronics, footwear and covering has deed fiscal markets.

While investors dumped stocks, income astatine golden store concatenation Galeri24 tripled to scope implicit 65 kg each time since stores reopened aft a vacation interruption this week, institution manager Endah Susiani told Reuters.

At a subdivision successful cardinal Jakarta, clerks worked hours past closing clip to thin to astir 200 customers each time mostly seeking to bargain tiny golden bars of up to 10 grams, sold astatine a terms of astir 1,770,000 rupiah ($105) per gram connected Wednesday.

Suhud Syahrani, 35, who works successful the accusation exertion sector, bought respective bars. He said helium had researched semipermanent concern options, hoping to bargain a location 1 day, and was gladsome helium did not take to enactment his wealth successful stocks oregon communal funds.

"The banal marketplace was decimated," helium said. "Our system is weakening."

The rupiah deed a grounds debased of 16,970 a dollar connected Wednesday, portion the banal marketplace extended losses aft a much than 7% plunge the erstwhile day, catching up with falls successful different markets aft an extended interruption for Eid al-Fitr astatine the opening of April.

Pawn store steadfast Pegadaian saw customers opening golden savings accounts worthy 84 kg successful a time connected Tuesday, up from astir 25 kg a time typically since it launched a bullion banking concern connected February 26, selling manager Elvi Rofiqotul Hidayah said.

Both Pegadaian and Galeri24 are portion of lender Bank Rakyat Indonesia.

Hundreds of radical besides formed agelong lines astatine pop-up golden stores operated by miner Aneka Tambang during the holidays arsenic planetary golden prices jumped, section media reported. Gold deed a grounds precocious of $3,167.57 an ounce connected April 3, driven by commercialized warfare concerns.

"Now is an epoch of uncertainty. It's extraordinary. Because of the commercialized war, reciprocal (tariffs), determination is simply a tremendous interaction connected golden prices and the radical recognize this and they anticipation to support their wealthiness against inflation," Elvi said.