Indonesia Silver Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Indonesia Silver Market Trends and Insights

Increased Jewelry Demand

Indonesia exported jewelry worth billions in 2023, ranking eleventh globally and underscoring a deep cultural preference for precious-metal adornments. Silver jewelry holds strong domestic appeal, especially from Bali’s artisanal workshops, and wedding seasons create recurring demand spikes. Household surveys show families owned precious jewelry, supporting a steady retail base. Retail transactions still occur mainly in physical outlets, which account for the majority of sales, leaving significant headroom for online channels to develop. Moderate real-wage growth and rebounding tourism keep jewelry fabrication volumes on an upward trajectory through 2028 before stabilizing. The driver adds an estimated 0.8 percentage points to the headline CAGR as better logistics and design innovation lift turnover in Java-based export hubs.

Rising Industrial Usage in Electronics and Photovoltaics

In 2025, industrial applications accounted for a significant portion of global silver consumption, a notable increase from a decade prior. This trend is mirrored in Indonesia's silver market. The Gresik–Surabaya corridor in Java has become a hub for new semiconductor packaging plants. These plants, which integrate multilayer ceramic capacitors and printed-circuit-board lines, have a heightened demand for high-purity silver paste. As the nation boosts its solar capacity, the demand for conductive inks surges. Furthermore, government tender documents emphasize local-content rules, promoting domestic silver sourcing. With recent investment commitments, battery-electric-vehicle production is on the rise. This sector's reliance on the metal's conductivity, especially in power electronics and high-current connectors, amplifies silver's significance. Collectively, the electronics, photovoltaic (PV), and automotive sectors are projected to elevate industrial silver consumption, a trend expected to persist well beyond 2031.

Government Downstream-Processing Incentives

In 2014, Indonesia enacted a law requiring all precious-metal concentrates to be refined domestically to a minimum purity of 99%, echoing its prior nickel strategy. Commissioned in September 2024, PT Freeport Indonesia’s Gresik complex processes copper concentrate annually, yielding refined silver. This facility doubled the nation's refining capacity and curtailed export leakage. The Ministry of Energy and Mineral Resources sets monthly benchmark prices, ensuring fiscal transparency. Additionally, a production royalty incentivizes higher recovery rates. PT ANTAM’s offtake agreements for a segment of the refined output bolster local supply chains and diminish dependence on foreign toll refiners. Collectively, these measures are projected to boost Indonesia's silver market growth in the medium term, as smelter utilization approaches its maximum capacity.

EV-Battery Supply-Chain Localization Push

Indonesia, leading Southeast Asia, is at the forefront of the region's electric vehicle (EV) investment surge. The country is also home to several gigafactory projects, driving up silver consumption in battery-management systems and fast-charging stations^{[1]Organisation for Economic Co-operation and Development, “Indonesia Economic Outlook 2025,” OECD.ORG}. Notably, electric vehicles utilize significantly more silver than their internal-combustion counterparts, especially in components like busbars, relays, and DC-fast-charging connectors. Government initiatives, including zero import tariffs on EV components and VAT rebates for domestically produced batteries, are propelling this growth. Additionally, as data centers expand to oversee fleet telematics, the demand for silver rises further, driven by needs in server connectors and cooling assemblies. Altogether, localization efforts add an extra 0.9 percentage points to the Indonesian silver market CAGR over a long-term horizon.

Environmental Compliance Costs

Recent ministerial regulations have tightened discharge and reclamation requirements. As a result, operators are setting aside funds for post-closure activities. At Grasberg and Batu Hijau, declining ore grades are increasing throughput needs. This, in turn, is inflating tailings volumes and raising energy consumption for each ounce of silver produced. An incident at PT Freeport Indonesia’s smelter in October 2024 delayed the full ramp-up to late 2025. This underscores the interplay between compliance and operational risks in curbing supply. Extended-producer-responsibility policies in electronics manufacturing will further raise recycling overheads, trimming market CAGR by an estimated 0.6 percentage points over the medium term.

Illegal And Artisanal Mining Losses

Informal handlers, lacking efficient extraction technologies, manage most of the nation's e-waste, resulting in significant losses of silver^{[2]Tri Nugroho et al., “Material Losses in Indonesia’s Informal E-waste Sector,” Journal of Sustainable Materials, RESEARCHGATE.NET} . In Kalimantan and Sulawesi, artisanal operations, using rudimentary methods, process low-grade ore and sidestep royalty payments, skewing official supply statistics. While government efforts to consolidate revoked licenses under PT Perminas aim to formalize some of this output, enforcing these measures is challenged by the region's remote terrain. Lost metal and environmental harm together subtract about 0.9 percentage points from the long-term CAGR.

Segment Analysis

By Form: Industrial Derivatives Outpace Bullion

Silver Powder and Nitrate held 25.83% of the Indonesian silver market share in 2025 and is growing at a 5.44% CAGR, the highest within forms. Electronics assemblers in Java rely on powder for capacitors and for photovoltaic paste used in front-side metallization, anchoring demand visibility. The Indonesian silver market size for fine, 99.9%-purity material feeds these powders, and refined volumes will follow the new Gresik smelter’s ramp-up curve. Bars, coins, and bullion remain an investment niche, hampered by limited retail distribution outside gold-focused outlets. Other forms—foils, wires, flakes—benefit from small but rising adoption in flexible displays and medical devices, yet their aggregate remains below 10 percent of volume. The market’s derivative-heavy tilt underscores why industrial growth, rather than investment sentiment, is the main volume driver through 2031.

Fine Silver commands stable but slower growth as refiners prioritize powder conversion to capture higher margins. Bars and Coins see even lower velocity because digital finance apps have not yet positioned silver products prominently. Structural supply rigidity underlines why industrial users increasingly secure long-term offtake agreements directly with smelters to manage continuity.

Note: Segment shares of all individual segments available upon report purchase

By Customer Segment: Electronics Surge Challenges Jewelry Dominance

Jewelry and Silverware retained 32.54% of the Indonesian silver market size in 2025, yet its CAGR trails industrial counterparts. The Electrical and Electronics segment, in contrast, expands at a 6.90% CAGR on the back of semiconductor packaging plants, data-center roll-outs, and the EV component ecosystem. Automotive applications embed more silver per unit and are scaling from a small base, giving them an outsized growth rate even if absolute tonnage remains moderate until the second half of the forecast horizon.

Pharmaceuticals and Chemicals maintain a niche demand for silver nitrate used in antimicrobial applications, supported by local university research and development programs targeting green nanoparticle synthesis. Photography and Imaging stay in terminal decline, replaced by digital modalities, though specialized medical film keeps a residual market. Investment Demand shows the slowest expansion, reflecting consumers’ preference for gold and regulatory hurdles surrounding the introduction of silver-backed retail products. Over time, electronics are set to eclipse jewelry as the single largest consumer, altering seasonality patterns that historically followed holiday and wedding cycles.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Java generated 28.24% of the Indonesian silver market size in 2025 and is projected to grow at a 5.47% CAGR to 2031. The island is home to a major refinery, numerous electronics manufacturing hubs, and the country's most concentrated e-waste infrastructure. Export data highlights Jawa Barat and Jawa Timur as leading provinces, playing a pivotal role in jewelry exports. The region's value-chain activities are further bolstered by the rise of digital finance and government-led initiatives for formal e-waste collection points.

Sumatra's silver market is driven by a prominent mine, which processed substantial amounts of ore in 2025, yielding significant silver output. Established logistics corridors seamlessly connect the mine's output to a refining network. With continued investment in smelter adjacency, there's potential for increased local refining margins. However, risks loom due to uncertainties surrounding license consolidation.

Kalimantan and Sulawesi, while contributing smaller tonnages, face unique challenges. High levels of artisanal activity obscure statistical clarity, but regional efforts to formalize mining could tap into additional volumes. Papua Tengah and Nusa Tenggara Barat dominate in supplying mined concentrates, but their limited local refining capacity necessitates transport to Java. Policy trends hint at future smelter constructions closer to mining sites, suggesting a potential eastward shift in value addition. Bali's silver consumption, primarily driven by jewelry and closely tied to tourism trends, contrasts with the rest of Indonesia segment, which is witnessing nascent recycling projects. These initiatives might decentralize supply flows, especially under extended-producer-responsibility mandates.