Indonesian Gold Miners Eye A Shinier 2025 As Prices Shatter New Records

Indonesian gold miners enjoyed profit surges last year and are eyeing further earnings boosts in 2025 as global economic uncertainties are driving investors toward safe-haven assets, repeatedly shattering the record price of the precious metal, Nikkei Asia reported.

Gold prices reached 40 new records last year, averaging at $2,386 per ounce, 23% higher than 2023, according to the World Gold Council. This year so far, prices have continued to hit new highs. Spot and futures prices touched $3,500 per troy ounce on Tuesday, a new all-time high, as U.S. President Donald Trump's attacks on Federal Reserve Chair Jerome Powell rattled traders.

Indonesia is Southeast Asia's largest producer of gold and is the seventh globally, according to the World Gold Council's 2023 rankings. The country produced 132.5 tonnes of gold that year, less than 4% of global production—which was led by China, Russia and Australia, respectively. Indonesia's output is three times that of the Philippines, Southeast Asia's second-largest gold producer, which was 25th in the rankings.

As with many of their counterparts globally, Indonesian gold miners posted significant jumps in their 2024 sales, according to their earnings reports released recently. And their profits are expected to increase further this year on the back of elevated prices.

"Chances are high that Indonesian gold miners like Aneka Tambang and Amman Mineral International will post even stronger earnings this year," Felix Darmawan, an economist at local securities Panin Sekuritas, said.

"If gold stays above $3,000 per ounce for a sustained period, it's realistic to expect double-digit earnings growth for these miners in 2025, barring any major disruptions in operations or exports."

Amman posted net income of $637 million last year, an increase of approximately 150% from 2023, as its net sales rose 31% to $2.66 billion. Arief Sidarto, the finance director, said the increases were "primarily driven by higher gold sales volume, supported by high-grade ore."

Aneka Tambang, also known as Antam, posted a nearly 70% sales jump to 69.2 trillion rupiah ($4.1 billion) in 2024, an all-time high in the company's history. While its nickel division suffered from slowing demand and price declines, its gold sales surged 120% last year, helping Antam post an 18.5% increase in net income to 3.65 trillion rupiah.

"Antam managed to maintain its position in the market as the top-of-mind choice for Indonesian communities investing in gold," said the company, which also engages in the gold retail business.

Bumi Resources Minerals posted a 75% jump in net income to $24.4 million, while its revenue was 3.5 times higher than 2023.
Ariston Tjendra, president director and gold analyst of Doo Financial Futures, said rises in gold prices are likely to last until the end of the year as ripple effects from Trump's new tariff policy fuel market concerns -- such as trade declines, an economic slowdown and rising inflation.

Tjendra noted actions by central banks worldwide to diversify foreign exchange reserves with gold to reduce dependence on U.S. dollars. He projected gold prices to further climb to a range of $3,600 and $3,700 per ounce by the end of the year.

Sutopo Widodo, president commissioner of HFX International Futures, said Trump's threat against the Fed's independence has spooked market participants, prompting their exit from U.S. assets and a shift toward safer assets like gold.

"Recent interest rate cuts by the European Central Bank boosted the appeal of precious metals in a low-yield environment," he said.
Miners, however, are unlikely to freely ramp up production to continue riding on the tailwind.