It was already evident that the Rajawali Group was insecure about the success of the IPO as the group extended the institutional book building period by nine days. However, demand (and the gold price) showed no marked improvement thus leading to the decision to postpone the IPO. The gold price has declined about 18 percent this year, implying that the gold miner would have to sell its assets relatively cheap if the IPO would be conducted this month. During the financial crisis in the late 2000s, the gold price surged as a safe haven asset. However, in recent years it has fallen, whereas the US dollar - another important safe haven asset - has been strengthening. Furthermore, a weak Indonesian rupiah exchange rate, which hit a six-year low at IDR 12,316 per US dollar today (04/12), limits profit margins for Indonesian miners.

Archi Indonesia has very low production costs with a current cash cost per troy ounce at USD $675, about USD $100 cheaper than the average for mid-sized gold miners. However, the company has a large debt (USD $280 million).