Indonesia's jewelry industry remains robust despite a 27% drop in domestic gold jewelry consumption, as rising gold prices boost bullion investment and export demand. The Ministry of Industry reports that cumulative jewelry and valuable goods exports surged 64.72% to US$9.1 billion in 2025, signaling strong opportunities for overseas buyers sourcing from Indonesian manufacturers.
Supply-chain impact
The 64.72% export surge to US$9.1 billion in 2025 highlights Indonesia's growing role as a jewelry supply hub. With 539 business units—including 49 large-scale and 79 medium-scale industries—the country offers diverse sourcing options for rings, earrings, necklaces, and gemstone jewelry. Buyers should note that rising gold prices have not dampened export momentum, suggesting competitive pricing and quality from Indonesian OEM/ODM suppliers.
Market dynamics and consumption trends
Global gold bullion demand rose 16% to 1,402 tons in 2025, according to the World Gold Council. However, Indonesia's domestic gold jewelry consumption fell 27% from 22.8 tons in 2024 to 16.6 tons in 2025. This divergence indicates that local consumers are shifting toward bullion investment, while export-oriented production remains strong. Importers and distributors should monitor this trend for potential shifts in product mix toward investment-grade pieces.
Government support and trade signals
The Indonesian government is actively facilitating promotions, exhibitions, technical guidance, and export workshops for small and medium jewelry enterprises. The Domestic Product Utilization Improvement Program (P3DN) also supports local sourcing. These initiatives signal a favorable policy environment for international buyers seeking reliable partners in Indonesia's jewelry supply chain.
What buyers should watch
Overseas buyers should consider Indonesia's 21,116-strong jewelry workforce and the government's export-focused incentives. The 64.72% export growth suggests strong capacity for private-label and branded jewelry production. However, the 27% domestic consumption decline warrants attention to inventory management and market positioning. Sourcing from Indonesia may offer cost advantages amid global gold price volatility.
Source: Read the original report | Published: May 29, 2026