MEMR mulls gold DMO as Antam faces supply gap

The Ministry of Energy and Mineral Resources (ESDM) is studying the possible introduction of a domestic market obligation (DMO) scheme for gold to help meet domestic demand. The move follows supply challenges faced by state-controlled miner PT Aneka Tambang Tbk. (IDX: ANTM), or better known as Antam, which still imports around 30 tons of gold annually to support its precious metal production.

Director General of Minerals and Coal at the ESDM Ministry, Tri Winarno, said the government must carefully consider the potential impacts before implementing a gold DMO policy. He noted that Antam already has an agreement with PT Freeport Indonesia (PTFI) to purchase around 25–30 tons of gold per year.

However, supply from Freeport has been suboptimal due to operational issues at its smelter. “If we impose a DMO now, what will happen once Freeport’s smelter becomes fully operational? We don’t want to end up with an oversupply,” Tri said on Monday (October 13, 2025), as quoted by Bisnis.com.

Tri added that the ministry will also evaluate the tax implications of gold exports and imports to determine the most beneficial policy direction. “We are still assessing this. I don’t yet know the right balance between domestic purchases and imports,” he said.

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Despite the challenges, Tri emphasized the government’s continued support for Antam’s efforts to boost production. “In general, we support Antam,” he said.

Antam President Director Achmad Ardianto previously said the company still imports about 30 tons of gold each year from Singapore and Australia to meet domestic demand, given that its own production remains limited. Antam currently produces only about one ton of gold annually, while domestic demand this year is estimated to reach 45 tons—up from 37 tons in 2024.

At the same time, many mining companies prefer to export or sell their gold to jewelry manufacturers rather than to Antam, even though they use Antam’s refining facilities. Achmad noted that Indonesia’s gold production potential reaches as much as 90 tons per year. “We import 30 tons even though domestic production is around 90 tons. Some producers sell to jewelry companies, others export,” he said during a hearing with Commission VI of the House of Representatives on September 29, 2025.

This situation persists because there is no regulation requiring miners to sell their gold to Antam, and existing business-to-business (B2B) arrangements are often seen as less favorable. “Because it’s B2B, there’s a lot of negotiation and tax consideration involved,”

Achmad explained. “For example, when miners sell gold to Antam, they often ask us to also buy the accompanying silver. But this bundling triggers a 13% VAT, which becomes a heavy burden for both the miners and Antam.”

Editing by Reiner Simanjuntak