Muhammad Awaludin, Lombok, West Nusa Tenggara. Rising gold prices is fueling a surge of informal gold panning in Lombok island, where hundreds of residents have been flocking to riverbanks in the hills of Central Lombok, West Nusa Tenggara, hoping to find tiny gold fragments amid economic pressure and limited job opportunities.

In Serage village, a rural area in Southwest Praya district, residents from across Lombok have been crowding along a narrow stream that cuts through the hills, using basic tools such as pans, shovels and buckets to sift sediment for traces of gold. Activity typically begins early in the morning and stretches into the afternoon, intensifying on weekends and public holidays.

The rush comes as domestic gold prices hit record high. State-owned gold miner Aneka Tambang, or Antam, reported that its gold bar prices jumped Rp 102,000 ($6.12) on Wednesday to Rp 2,946,000 per gram, after plunging Rp 183,000 a day earlier – one of the steepest daily corrections this year. Despite the swings, Antam gold is up about 18% year to date, rising from Rp 2,488,000 per gram at the start of 2026. Prices reached a record Rp 3,168,000 per gram on Jan. 29.

Global prices have also remained elevated. According to goldprice.org, gold has gained about 71% over the past year to $5,054.71 per ounce, driven by geopolitical tensions, global economic uncertainty and strong safe-haven demand.

"I came just to try my luck," said Samsul Hadi, a local resident who visited the site on Wednesday with his family after hearing claims that some villagers had collected as much as two grams of gold. "It's a holiday, so why not try?"

His results, however, fell short of expectations. After a full day of panning, Samsul said he found only tiny specks resembling grains of sand. "So far, there's nothing big – just very small dots," he said, adding that he might return if others report better results.

Total gold demand in 2025, including over-the-counter transactions, exceeded 5,000 tonnes for the first time, according to the World Gold Council. The record-breaking rally, which saw gold set 53 new all-time highs during the year, pushed total market value to an unprecedented $555 billion, up 45% year on year. Investment demand played a major role, with global gold exchange-traded fund holdings rising by 801 tonnes – the second-strongest increase on record – while bar and coin purchases climbed to a 12-year high.

The growing crowds in Serage have drawn the attention of local authorities. Community police officer Indra Jaya Kusuma said police and village officials have repeatedly urged residents to stop panning and digging in the area, warning of environmental risks.

"We are concerned this activity could lead to soil erosion, landslides and flooding," Indra said, noting that the area is hilly and vulnerable, especially during the rainy season.

He acknowledged that the appeals, delivered through what he described as a persuasive and humane approach, have had limited effect. "Economic reasons and the hope of finding gold are the main drivers," he said.

There is no official data on how many people are involved or how much gold has been recovered. Authorities continue to monitor the situation and educate residents, while urging village leaders to take preventive steps to avoid wider environmental damage as high gold prices keep hopes – and risks – alive in rural communities.

Source: https://jakartaglobe.id/news/gold-price-surge-triggers-informal-panning-rush-in-lombo