Avoid These 6 Credit Card Mistakes to Avoid Getting Trapped in Debt

 Having a credit card is the key to easier transactions. From shopping to vacations to paying for daily necessities, everything can be done using a credit card. But if you don't manage your credit card properly, it can backfire on your finances.

Just imagine: you take out an installment plan because you saw a 0% promotion on your favorite e-commerce site. Then, next month, you take out another installment plan for a new gadget. Before you know it, your monthly installments have ballooned, and you're starting to struggle with the constant bills. Plus, there's the added burden of late interest.

The above often happens not only because of poor money management skills, but more so because you don't understand credit cards. Many credit card mistakes can be prevented if we're aware and careful from the start. Let's use our credit cards wisely by avoiding the following mistakes.

Avoid These 6 Credit Card Mistakes to Avoid Getting Trapped in Debt

6 Credit Card Mistakes

Consistently Paying Only the Minimum

Many people think that by only paying the minimum amount, they're using their credit card correctly. However, this is a trap that can quickly balloon their bill. Paying the minimum means customers only pay a small portion of the total installment, and the remainder will be charged high interest each month. In the long run, this can make your total debt much larger than you imagined.

If this happens consistently, you might feel like you're paying every month, when in fact, your debt isn't decreasing. Therefore, prioritize paying your credit card bill in full every month to prevent interest from accumulating and to keep your finances under control.

Frequently Using Your Credit Card for Consumptive Items

Credit cards make transactions easier, but don't overuse them and use them to buy things you don't really need. Impulsive purchases like buying expensive fashion or hanging out at trendy cafes can feel easy when you swipe them, but feel heavy when the bill arrives.

If you can't control yourself, you could end up using your credit card every month for consumptive needs without long-term benefits. Try to get into the habit of creating a monthly budget and spending limits. Use credit cards for essential items that you can repay without issue.

Having Many Cards But Not Being in Control

Having multiple credit cards may seem great. It increases your limit and allows you to take advantage of more promotions. But if not managed properly, having multiple credit cards can actually be overwhelming. Many people end up forgetting due dates, forgetting which bills to pay, and ultimately falling behind.

Frequently making late payments or exceeding the limit on one card can affect your overall credit score. This is crucial if you ever need to apply for a mortgage, car loan, or other loan.

Therefore, it's best to manage the number of credit cards you have. If you don't need them, using just one is sufficient.

Ignoring Credit Reports

Another mistake credit card users make is ignoring credit reports. A credit report is a document that records a person's or business's credit history. It's crucial for credit card users to monitor this because it contains all your transactions, including purchases and credit payments.

So, if there's an error in your report—such as an unmade transaction or a bill that's been paid but not yet recorded—you can find out immediately and avoid it impacting your credit application and interest later. Checking your credit report isn't difficult, either, as you can do it on the Cermati app.

Late Payments Without Excuse

If you're just one day late on your credit card bill, the bank can immediately impose a fine and interest. Furthermore, this delay can be recorded in the banking system and affect your credit report. If you're frequently late on payments, not only will it be difficult to get approved for your next credit card, but also other loans or installments because you'll be considered high risk.

Disciplined payment is key to healthy credit card use. Set reminders in your calendar or mobile banking so you don't miss the due date. It's also a good idea to set aside a dedicated cash reserve to pay bills so you don't have to scramble for cash when the due date comes, especially if the bill is large and comes at the same time as other expenses.

Not Reading Promo Terms and Conditions

Who loves hunting for promos? Credit card promos are very tempting. They range from big discounts, 0% installments, cashback, and much more. But often there are hidden terms and conditions that can disappoint users. For example, there might be a minimum transaction, or the promo is only valid for certain purchases for a limited time.

If you don't read the details, you could end up spending more than you planned. In other words, instead of making a profit, you'll end up losing money. Therefore, before using a promo, make sure you read all the terms and conditions and understand when and how the promo applies. If you're careful, you can take advantage of credit card promos to save money on your transactions!

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Is it possible to buy gold using a credit card?

Have you ever thought about buying gold with a credit card? This idea is actually quite appealing. Imagine being able to take home gold bars or gold certificates without immediately draining your savings; you can simply pay later or pay in monthly installments. But before trying, it's a good idea to understand the advantages and risks of buying gold with a credit card.

Can You Buy Gold with a Credit Card?

Can you really buy gold with a credit card? The answer is absolutely yes, as long as the merchant or gold shop you're buying from accepts credit card payments. In fact, they often partner with banks to offer low-interest installment plans, even 0%. But remember, not all shops accept credit cards, so be sure to call the shop, visit them in person, or check their website.

Is it possible to buy gold using a credit card?

Advantages of Buying Gold with a Credit Card

Pay in More Flexible Installments

One of the main reasons many people buy gold with a credit card is the more flexible payment options. Just imagine, you don't have to spend millions of rupiah in a single transaction. Simply pay in monthly installments, according to the chosen term, for example, 3, 6, 12 months, or even up to 24 months.

So, even if your financial situation isn't ready yet, you can still start investing in gold now. Even more interestingly, many banks partner with merchants or gold shops to offer 0% installment programs. This means customers can pay their bills in installments without any additional interest.

You Can Earn Cashback or Points

In addition to installment payments, buying gold with a credit card often offers additional benefits in the form of cashback or reward points. So, while buying gold, you can also earn "bonuses" from the bank.

For example, for every purchase of a certain nominal amount, you'll earn points that can be exchanged for shopping discounts, dining vouchers, or even direct discounts on future transactions. Some banks also offer cashback directly during transactions, especially when there are promotions at certain gold merchants.

Transaction Protection

Not all transactions run smoothly, especially when buying online. One of the advantages of credit cards is their transaction protection feature. If an error occurs, such as an item not shipped, an incorrect quantity, or a suspicious merchant, customers can file a complaint with the card-issuing bank. This process is often called a "dispute." The funds paid can be held until the issue is resolved.

Easy Access

Now, buying gold doesn't require going to a store and queuing. Using your smartphone, you can instantly check the gold price, select the type, and pay with your credit card in minutes. Several official platforms also offer credit card payment options and installment features directly within the app. Investing in gold has become easier and hassle-free.

Risks to Be Aware of

High Interest If You Don't Pay in Installments

While it's very easy to pay with a credit card, there are risks to be aware of if you don't convert your gold purchase into a fixed installment plan. If you only pay the minimum amount and don't convert the transaction into installments, the interest charged can be quite significant.

For example, if you buy gold worth IDR 5 million and don't convert it to installments, then you can only afford the minimum payment. Within a few months, your total bill could balloon. However, gold investments generally provide long-term returns with stable increases. If you can't pay off the balance, the credit card interest will outweigh the increase in the gold's value.

Overlimit and Additional Fees

When purchasing gold using a credit card, don't just look at the nominal price; you should also consider any hidden fees that may be charged. For example, some merchants charge an additional fee for credit card payments. This fee is called a merchant fee and can range from 2–5% of the total transaction.

For example, if you buy gold worth IDR 10 million, the merchant will charge an additional 3% fee. This is quite a large amount, especially if not considered from the outset. Therefore, it's crucial to check for additional fees during transactions.

Furthermore, one common risk is overlimit, which occurs when your total transaction exceeds your credit card limit. If you exceed the limit, the bank will usually charge an additional fee, and the transaction may be rejected.

Gold Price Fluctuations

Gold prices do tend to rise in the long term, but that doesn't mean they never fall. In the short term, gold prices can fluctuate quite sharply depending on global economic conditions, the rupiah exchange rate, and global geopolitical situations. So, if you buy gold when the price is high and then it suddenly drops, the potential loss could be even greater if you haven't paid the installments in full.

Imagine buying gold with a credit card, hoping the value will increase in a few months. But the opposite happens. Therefore, buying gold with a credit card should be done with careful consideration and not simply because you're tempted by promotions or discounts.

Lack of Discipline in Paying Bills

When deciding to buy gold with a credit card, you must have a clear payment plan and a commitment to paying it off on time. The problem is, if you pay late, you'll not only be charged a late fee but also additional interest. These accumulated costs can make installments that initially seemed light actually become a financial burden.

Furthermore, late payments will affect your credit report. A bad credit report will certainly make it difficult for you to take out loans in the future. If you're not confident in your ability to pay on time, it might be better to use other, safer payment options.

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Benefits of Total Loss Only (TLO) Car Insurance

 New and used cars certainly have striking differences, whether in terms of price, performance, or driving comfort. Despite these differences, public interest in buying used cars remains high.

To ensure safer driving, people often insure their cars with a trusted insurance company. One popular insurance product is Total Loss Only (TLO).

Benefits of Total Loss Only (TLO) Car Insurance

What is TLO, and what are the benefits of this insurance? Here's an explanation.

What is Total Loss Only Insurance?

As the name suggests, Total Loss Only (TLO) insurance is a type of car insurance that covers the cost of repairing a customer's vehicle if the damage is severe, amounting to 75% of the vehicle's value. This type of insurance also provides compensation if the insured car is totally lost.

At this percentage, the car can be considered unusable even after repairs. Furthermore, repair costs are also expensive due to the large number of parts that must be replaced. Therefore, Total Loss Only (TLO) car insurance is crucial, as it can cover replacement costs.

Benefits of TLO Insurance

Like most insurance products, TLO car insurance offers several benefits, including:

Protection in Case of Car Theft

No one wants their beloved car stolen, even if it's being replaced with a new one. But misfortune can happen at any time, regardless of who it is. With TLO insurance, you don't need to worry if your car is stolen by an irresponsible party.

To file a claim for a lost vehicle, you need to attach supporting evidence, such as CCTV footage. You'll also need to prepare documents such as an insurance policy and a claim form.

Reduced Repair Expenses

Car repair costs are many times more expensive than motorcycle repairs. Repairs to damaged parts, especially major damage, can quickly drain your wallet. Instead of paying expensive repairs, TLO insurance will cover these costs.

Cheaper Premiums

Car insurance premiums for TLO tend to be cheaper than all-risk insurance, typically around 0.8% to 1.02%. Much cheaper than all-risk insurance, which costs 2.5-3.5% of the car's market price, TLO insurance allows you to save around 1.23% per year. This percentage is also influenced by vehicle category and region, as stipulated by the Financial Services Authority (OJK).

For example, assume a car costs Rp150 million with a 1% insurance premium. This means you'll need to pay Rp150,000 per year. Not a huge amount to protect your car, right? The amount covered by insurance is usually greater than the annual premium.

Please note that the percentages above are only examples and may change according to insurance company regulations or OJK regulations. Consult with your agent or dealer to determine the appropriate premium.

Expandable Benefits

Want to add protection to your beloved car? Don't worry, TLO insurance allows you to expand your coverage. There are seven types of car insurance coverage extensions available, as follows:

Floods, including hurricanes.

Earthquakes and tsunamis.

Riocracy and civil commotion (SRCC).

Terrorism and sabotage.

Third-party legal liability.

Personal accidents for passengers.

Legal liability for passengers.

You can even change your car insurance type to all-risk if needed. Simply fill out the form and complete the required documents, and you'll receive broader coverage.

Before expanding your coverage, carefully review the insurance company's terms and conditions. If you have any questions, please ask the insurance agent or officer directly.

Providing a Sense of Safety and Comfort While Driving

Having car insurance provides an extra sense of safety and comfort while driving. You won't have to worry if your vehicle is damaged by a collision with another driver, as the insurance company will cover the repair costs.

While not everything is covered, the insurance company's compensation is at least a small amount, especially when you add in the compensation for the driver who collided with the vehicle.

TLO Insurance Offers Ample Benefits

With lower premiums than all-risk insurance, TLO insurance is a suitable option if you want protection on a more affordable budget. However, it's important to remember that the protection offered by TLO is not as flexible as all-risk car insurance.

Drive safely. Even with all the protection you have, safety while driving should remain your top priority.

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Understanding the Meaning of 'Double Claim' in Health Insurance

Obtaining privileges from insurance and other banking products is certainly enjoyable and profitable. However, it's important to understand each term of the privilege offered to entice you to purchase the product.

Clearly explaining the benefits you'll receive without any misunderstandings will prevent you from regretting it later. Being a smart consumer is essential for financial well-being.

For example, the term "double claims" in health insurance often serves as a lure for people to purchase the product without fully understanding its meaning. At first glance, there's nothing wrong with the term. However, many people misunderstand the meaning of "double claims."

This can lead to them expecting more from additional health insurance than what the company already provides. Therefore, understanding the meaning of "double claims" in insurance is crucial.

So, what does "double claim" mean in insurance?

A double claim in insurance occurs when a policyholder files a claim for the same incident or loss with two different insurance companies simultaneously. This practice can be legal or illegal, depending on the type of policy, the terms of each insurance company, and the claim submission method.

In permitted situations, such as with health insurance, a double claim occurs when a participant has two policies (for example, one from a company and one from a personal insurance company). If one policy doesn't cover the entire cost, the remaining balance can be claimed from the other policy—as long as it doesn't exceed the total actual costs.

For example:

A person has two health insurance policies: one from their company (group insurance) and one from their personal insurance company.

They are hospitalized for a total of IDR 10 million.

The company insurance company covers IDR 7 million, and they submit the remaining IDR 3 million to their personal insurance company.

Because neither policy exceeds the actual costs, and there are no prohibitions in the policies, this is a valid double claim. Some personal insurance policies even offer a "coordination of benefits" system, or reimbursement for the difference not paid by the first party.

However, if someone attempts to obtain full payment from two insurance policies for the same loss (for example, in a car accident and claiming the same damages from both parties without basis), this is considered fraud and a violation of insurance law and ethics.

Examples of Misconceptions About Double Insurance Claims

A common misconception about double insurance claims often stems from the assumption that if someone has two insurance policies, they can receive double the claim amount for a single incident. However, this is incorrect and can lead to claim denials or even accusations of insurance fraud.

For example, a person has two vehicle insurance policies. When their car is damaged in an accident, they file a claim for Rp 10 million with Insurance Company A and receive full compensation. However, they also file a claim for the same damage with Insurance Company B, hoping to receive an additional Rp 10 million. However, the total loss is only Rp 10 million.

This is considered an illegal double claim because the intention is to gain more than the actual value of the loss.

Benefits of Double Claims Health Insurance

You should understand the following benefits of the double claim facility to feel comfortable participating in this insurance program:

You can receive treatment or care at any hospital that is not a partner of the insurance company with the double claim facility.

You can do this through reimbursement. Usually, you will be asked to pay the costs of treatment and care during your stay in the hospital. You can then claim the bill from the insurance company, and the insurance company will reimburse you for the amount you have spent, as stated on the receipt.

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Benefits of All Risk Car Insurance for Protection from Various Risks

 Various risks of damage while driving are a possibility, whether due to weather, natural conditions, or even irresponsible drivers. Not only is the risk of car damage significant, but financial losses can also leave vehicle owners scratching their heads.

Just imagine, car damage, such as a dent in the body or repairing an electric mirror, can drain your wallet from hundreds of thousands to millions of rupiah. Therefore, good vehicle owners need to protect themselves from these various risks by purchasing comprehensive car insurance.

Why All-Risk Car Insurance?

One of the reasons why all-risk insurance, often referred to as comprehensive insurance, is so popular is its comprehensive and diverse protection. Unlike TLO car insurance, which only covers damage or loss up to 75% of the vehicle's value, all-risk car insurance provides more comprehensive protection, even if the damage is less than 75% of the vehicle's value.

Therefore, if you want more comprehensive and diverse car insurance protection, all-risk insurance is the right choice. Benefits of All-Risk Car Insurance

Here are the benefits of having all-risk car insurance for car owners.

Comprehensive and Varied Protection

As mentioned, the advantage of all-risk car insurance is its more comprehensive and varied protection. This type of insurance covers dents, scratches, broken glass, and other damage to vehicle components.

Can Cover Losses, Both Minor and Major

All-risk insurance covers a range of minor and major damages. Losses, such as scratches on the paint or dents that are less than 75% of the vehicle's value, are still covered by all-risk car insurance.

This differs from TLO (Total Loss Only) car insurance, which only provides protection for damage that reaches 75% or more of the vehicle's value and the risk of loss. Minor damage is not covered by TLO insurance.

Provides Peace of Mind While Driving

With more comprehensive and varied protection, both minor and major, drivers will naturally have greater peace of mind while driving. Vehicle owners need not worry about the risks of potential damage. However, drivers must still exercise caution while driving to ensure the safety of themselves and others.

Protection for Vehicles and Finances

With car repairs being expensive, car insurance certainly offers financial protection benefits. With comprehensive insurance, the cost of repairing car damage is covered by the policy, so the owner doesn't have to spend their own money.

To file a claim, the owner only needs to pay Rp 300,000. This claim fee is much cheaper than paying for repairs to other car damage, which can reach millions.

For example, if your car's electric mirror is damaged in a collision and you want to file a car insurance claim, you only need to pay Rp 300,000. This is much cheaper than paying Rp 1.5 million for repairs if you had to make a repair without insurance.

Can Be Equipped with Various Extensions

Car insurance extensions are additional protection that vehicle owners can purchase. Essentially, these extensions provide additional protection against risks not covered by the main car insurance policy.

Here are 7 types of car insurance extensions:

Floods, including hurricanes.

Earthquakes and tsunamis.

Riocracy and civil commotion (SRCC).

Terrorism and Sabotage.

Legal liability to third parties.

Personal injury to passengers.

Legal liability to passengers.

Having All-Risk Car Insurance Is a Wise Move

The benefits of all-risk car insurance are undeniable. Its flexibility and comprehensive coverage provide car owners with peace of mind about all driving risks. However, it's important to note that all-risk insurance carries a higher premium than TLO car insurance. However, given the level of protection offered, the premium for all-risk car insurance is certainly higher and well worth the cost.

Despite the various protection benefits of car insurance, wise drivers must remain cautious when driving. Avoid reckless driving that could harm themselves or others. This concludes our explanation of the benefits of all-risk car insurance. We hope this is helpful, and please be careful when driving!

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All Risk or TLO Car Insurance: Which One Should You Choose?

Indonesians are highly aware of potential road risks. This is evident in the wide range of car insurance policies offered in Indonesia. This is understandable, considering the high number of road accidents, especially in large cities like Jakarta.

Those considering purchasing a car insurance policy may be confused by the choice between All Risk and Total Loss Only (TLO) insurance. Therefore, car owners need to understand the difference between them.

Why is Car Insurance Important?

The WHO notes that traffic accidents are the third-leading killer in Indonesia, after coronary heart disease and tuberculosis. According to data from the Indonesian National Police Traffic Corps (Korlantas Polri), there were 103,645 cases in 2021. Human negligence is a major factor in accidents.

It's understandable that this factor stems not only from ourselves but also from others. On the road, the negligence of others can have a devastating impact. Even if someone drives carefully and orderly, they can still fall victim to reckless drivers.

The risk of injury or death can be reduced by improving safety, but the risk of vehicle damage, whether minor or serious, is often unavoidable. This is why our vehicles, in this case cars, need insurance. Furthermore, even the damage is only a scratch, which can be quite expensive.

Accidents aren't the only reason. Mugging and vehicle theft are increasing everywhere. Not only in big cities, but even small, quiet towns are often targets for crime. Consequently, the risk of vehicle theft is also increasing. Therefore, it is very logical if someone decides to insure his car.

What's the Difference Between All-Risk and TLO Car Insurance?

Before deciding which type of car insurance to purchase, it's best to first learn about the two types of car insurance and their advantages and disadvantages:

Total Loss Only (TLO) Car Insurance

Total Loss Only (TLO) literally means "only (if) total loss." This means that an insurance claim can only be filed in the event of a "total loss." In car insurance, a total loss is defined as damage exceeding 75%, or loss due to theft or robbery.

If the damage is less than that, you will not receive compensation. The 75% threshold is used because the car is guaranteed to be unusable. The advantage is that TLO insurance premiums are lower than All-Risk/comprehensive car insurance.

Below is a list of TLO insurance premium rates regulated by OJK Circular Letter Number 6/SEOJK.05/2017.

All Risk Car Insurance/Comprehensive Insurance

All Risk can be translated as "all risks." It is also called comprehensive car insurance. This means the insurance will pay claims for all types of damage, from minor to major damage, to loss.

Unlike TLO, the insurance will pay even the slightest scratch on the car. This comprehensive coverage is what makes All Risk or comprehensive car insurance premiums more expensive than TLO insurance premiums.

Below is a list of All Risk or comprehensive car insurance premiums regulated by OJK Circular Letter Number 6/SEOJK.05/2017.

Can All Risk/Comprehensive Car Insurance and TLO Insurance Policies Be Combined?

No need to worry. You can combine TLO and All Risk coverage. For example, if the car you want to insure has just been released from the showroom, or perhaps you're buying a used car on credit, there's no harm in purchasing an All Risk policy for the first and second years. After that, you can insure the car with a TLO policy for the third year and beyond.

The financial burden compared to the risk of damage is an important consideration. A new car will certainly cost relatively more, even if the damage is only minor. As the car gets older, there's no harm in switching to Total Loss Only.

So, Which One Should You Choose?

The illustration above illustrates how to calculate TLO and All Risk car insurance premiums. It's clear that the cost of All Risk/comprehensive car insurance is much higher than TLO, especially if you want to extend coverage.

If your car is expensive and requires significant costs even for minor damage, it's best to choose All Risk. This type of insurance is also suitable for car rental businesses or driving courses, as the risk of even minor damage is relatively high.

The frequency of car use influences the type of insurance you choose. The more frequently you use it, the greater the chance of an accident. This is especially true if your route is frequently busy. Again, All Risk (comprehensive) car insurance is the best choice.

Conversely, if your car is parked at home more often than you take it out, it's better to choose TLO. Accidents aren't the only determining factor. Crime rates also need to be considered. Crime rates in certain areas are relatively high. If you live or frequently travel in such areas, be sure to insure your car with TLO.

You might think, "I can't be certain I'll have an accident within a year." If you think that and ultimately decide not to insure your car, you should reconsider.

Since no one knows when disaster will strike, prevention is better than cure, right?

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Gold Investment as an Investment Instrument

 Gold has been a popular investment product for centuries. Generally, gold jewelry, such as necklaces, rings, and bracelets, is more popular among women as both jewelry and investment.

However, the most suitable type of gold for investment is gold bullion or precious metal. This is because gold for investment should be pure gold without any alloys. The purity level of gold is 24 karat, or 99.00-99.99%. Therefore, pure gold, or 24 karat gold, has a higher purchase and sale price than alloyed gold with a purity of 18 karat, 22 karat, or 23 karat, which is commonly used for jewelry.

Like any investment product, pure gold bullion purchased also has a certificate recognized by the international market. Gold is also considered a low-risk investment product because its price is not affected by inflation. This differs from the value of money held in a savings account, whose value can be eroded or reduced by inflation.

Regarding price, gold prices fluctuate daily. These changes are determined by the value of gold on the international market. Buying gold bullion is not expensive, because you can buy gold bullion (precious metal owned by PT Aneka Tambang) in fractions (grams) whose value can be adjusted to money.

5 Factors Driving Gold Prices

Similar to stock prices, foreign exchange rates, and other financial assets, gold also experiences daily price fluctuations. Although the price of pure gold is not affected by inflation, other factors can influence these fluctuations. The following are the factors driving the price of pure gold.

USD Exchange Rate

Gold prices generally move inversely to the price of the US dollar (USD). If the value of a currency experiences inflation, the price of basic necessities will also rise. Consequently, the money supply will increase, and the exchange rate of that currency will decline.

When this occurs, most people will generally shift their investment instruments to gold. This is because the price of gold tends to be higher, or at least more stable, than the value of the currency. In other words, the lower the value of money, the higher the price of gold.

World Political Situation

Naturally, the world political situation will affect various aspects of the economy, including stock prices, currency values, and even gold. This generally occurs when countries are at war or in conflict.

For example, if a country is at odds with the USD, stock values, both in the US and the affected country, will fall because investors tend to withdraw their assets from the stocks in question. With this withdrawal, they tend to shift to gold, which is considered more stable. Consequently, demand for gold increases, and gold prices also rise.

Wealth Protection

This factor in gold price movements is closely related to the two factors mentioned above. This is because gold investment is an instrument that is not eroded by inflation and tends to be stable.

If inflation occurs, an investor who does not invest in gold will face the risk of losing the value of their assets. However, if they also invest in gold, at least a portion of their assets will still be protected.

Furthermore, investors can also protect their remaining assets that have been affected by inflation by transferring them to gold. This way, the value of their assets will not decrease drastically. Gold can also be used as a "safe haven" asset when inflation-related issues arise.

Gold Reserves at Central Banks

Similar to investors, central banks also need to diversify their assets. To safeguard state assets, this is also necessary.

So, how do gold reserves at the Central Bank affect gold prices? This is also related to market demand or inflation. If inflation occurs or demand is high, gold at the Central Bank will circulate significantly, thus increasing the price.

Supply and Demand

From the factors above, it is clear that gold prices are indirectly related to supply and demand. Whatever happens in the economy, if it causes increased demand, the product in question will also experience a price increase. Similarly, with gold, the price will increase if demand for gold increases.

Prices increase not only due to inflation or economic stability, but demand for gold will also increase if demand for gold jewelry increases. Although jewelry generally does not use pure gold, the manufacture of gold jewelry will also affect the price of pure gold.

Besides the jewelry industry, other industries can also use gold, such as the electronics, computer, and even healthcare industries. This is due to gold's excellent conductivity (ability to conduct electrical current), flexibility (easily forged and shaped), and resistance to rust when reacting with other elements.

It's clear that gold isn't only used for investment or jewelry; it's also used in many industries. If gold is needed across all sectors, demand for it will increase, and prices will rise.

This is also related to the available supply in Indonesia. Although Indonesia has its own gold mines, this doesn't necessarily mean the country's gold supply is high. This is because gold production and demand are also high, which in turn reduces the country's supply. The lower the supply, the higher the price of gold.

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Antam Gold Buyback Prices Soar Ahead of the Fed Meeting

 Antam's gold buyback price was observed to have increased ahead of the Fed meeting. Based on Precious Metals data on Wednesday (30/7/2025), the Antam gold buyback price, which is the benchmark for repurchases by PT Aneka Tambang Tbk. (ANTM), rose by Rp12,000 to Rp1,764,000. This position reflects a 29.23% increase since the beginning of 2025. However, Antam's gold buyback price is still far from its all-time high (ATH) of Rp1,888,000 on April 22, 2025. A gold buyback is a transaction to resell gold, whether in the form of precious metals, bullion, or jewelry. Typically, the quoted price is lower than the current selling price.

However, gold buybacks can still be profitable if there is a significant difference between the selling price and the buyback price. According to PMK No. 34/PMK.10/2017, reselling gold bullion to Antam with a nominal value of more than IDR 10 million is subject to Article 22 Income Tax (PPh) of 1.5 percent for NPWP holders and 3 percent for non-NPWP holders. Meanwhile, Article 22 Income Tax on buyback transactions is deducted directly from the total buyback value.

According to Bloomberg on Wednesday (July 30, 2025), the United States Federal Reserve (The Fed) is expected to maintain its benchmark interest rate at its current level at its July 29-30, 2025 meeting, marking the fifth consecutive meeting without a rate change. However, the possibility of dissenting votes from some Fed officials could signal that some members of the Federal Open Market Committee (FOMC) want to lower borrowing costs more quickly. With a wealth of economic data due before the next meeting in September 2025, Powell is expected to maintain a cautious stance while awaiting further clarity on the direction of the economy and monetary policy. "There's no doubt the FOMC will keep rates on hold. The question is whether they'll be more open to a rate cut at the September meeting," said Bill Nelson, Chief Economist at the Bank Policy Institute and a former senior economist at the Fed.

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Gold Prices Plunge After the Fed Holds Interest Rates

 Global gold prices fell more than 1% after the Federal Reserve maintained its benchmark interest rate and failed to provide a clear indication of the timing of a rate cut. Strong US economic data also dampened the appeal of the yieldless precious metal. According to Reuters on Thursday (July 31, 2025), spot gold prices fell 1.5% to US$3,275.92 per troy ounce at 3:08 p.m. New York time (19:08 GMT). Meanwhile, US gold futures fell 0.8% to US$3,352.80 per ounce. The Fed decided to hold interest rates in a divided decision, without providing any certainty about when borrowing costs would be lowered. Two members of the board of governors expressed dissent at the meeting. Fed Chairman Jerome Powell stated that no decision had been made regarding a September interest rate cut, although many market participants had previously expected that to be the beginning of monetary policy easing. He added that the risks of a weakening labor market were now becoming apparent.

Tai Wong, an independent metals trader, said Powell is sticking to his stance, focusing more on controlling inflation than responding to labor market concerns. "The dollar is surging, putting additional pressure on gold, although bullion prices are still holding at the lower end of the range. A deeper correction would likely trigger renewed buying, as gold's fundamentals—uncertainty, high US debt, and the de-dollarization trend—remain strong," he said.

The ADP employment report showed that the US private sector added more jobs than expected in July, although several indicators suggest the labor market is softening. WisdomTree commodity analyst Nitesh Shah added that the more strident the Trump administration's criticism of current policy direction, the greater the potential for gold prices to rise. Gold is known as a superior hedge against uncertainty and when interest rates are low. Besides gold, other precious metals also experienced sharp declines. Spot silver plunged 3.2% to US$36.97 per ounce, hitting a nearly three-week low. Platinum fell 6.6% to US$1,303.19, its lowest since June 24, while palladium weakened 4.9% to US$1,196.75. According to Jim Wyckoff, senior analyst at Kitco Metals, this pressure was likely caused by profit-taking by short-term traders. "The gold market has been in a correction recently, and that has put additional pressure on platinum and palladium," he said.

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Emergency Fund: Benefits, Ideal Amount, Tips for Accumulating It

 No one can be certain what the future will hold. Meanwhile, unexpected events, such as job loss or worsening health conditions, are very likely to occur.

But don't be discouraged. Even though you can't predict the future, you can still reduce your risk of loss and maintain financial stability through an emergency fund.

Emergency Fund: Benefits, Ideal Amount, Tips for Accumulating It

What Is an Emergency Fund?

Imagine having a secret savings account you can rely on in times of emergency and unforeseen circumstances. That's what an emergency fund is, folks!

An emergency fund is a specific amount of money set aside to deal with unexpected situations that can cause a headache, such as job loss, sudden home repairs, or costly health issues.

An emergency fund is your financial safety net to ensure you remain calm when life's storms hit.

Benefits of an Emergency Fund

Used in times of emergency, there are several benefits you can gain from an emergency fund, including:

1. Reduced Financial Stress

Financial stress can be reduced by having an emergency fund. You no longer need to panic about finding funds in an emergency.

2. Prevent Debt

Avoid taking out loans or high-interest debt when you urgently need money. An emergency fund can keep you secure in the coming months, even when life is uncertain.

3. Maintain More Financial Stability

The benefit of an emergency fund is that it can maintain your financial stability. An emergency fund keeps you on track with your financial goals, even when faced with unexpected expenses.

Ideal Emergency Fund Amount

So, what is the ideal emergency fund amount? There's no exact number that works for everyone, but generally, it's recommended to have an emergency fund equivalent to 3-6 months of living expenses.

If you're single, 3 months might be enough, but if you have a family or other dependents, consider saving up to 6 months of expenses.

Tips for Accumulating Emergency Funds

Below are some effective tips for accumulating emergency funds:

1. Set a Target

Having a clear target will help you feel more motivated. You can start by calculating your total monthly living expenses, then multiplying it by the number of months you need, for example, 3-6 months.

2. Open a Special Account

Separate your emergency funds from your regular accounts to avoid the temptation to use them. Open a special savings account and ensure it's easily accessible in an emergency.

You can save for emergency funds through relatively stable and easily liquidated investments, such as money market mutual funds.

3. Save Regularly

Consistency is key to building an emergency fund. Set aside a certain amount of money regularly, for example, weekly or monthly. You can adjust according to your financial capabilities.

4. Evaluate and Adjust

Financial conditions can change, as can your emergency needs. Therefore, review your emergency fund at least once a year to ensure it's still relevant to your current situation.

5. Have Insurance

Insurance can help you accumulate emergency funds. This is because when an unexpected event occurs, you can use the benefits of insurance instead of using the emergency funds you've already accumulated.

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