Heaptalk, Jakarta — Indonesia will establish its first Bullion Bank next year after issuing the Financial Services Authority Regulation (POJK) No. 17 of 2024 on the Operations of Bullion Business Activities. The Bullion Bank, a gold-centric financial institution, aims to capitalize on Indonesia’s vast gold reserves while addressing domestic and global market dynamics.
“The introduction of this bullion service is timely, as current global market dynamics present significant opportunities for investors to leverage gold’s potential in optimizing their assets,” said Agusman, Chief Executive of Non-Bank Financial Institutions Supervision at the Financial Services Authority (OJK), in a recent press release.
Agusman emphasized the urgency of establishing a Bullion Bank in Indonesia, given the nation’s dual role as a leading gold producer and a holder of substantial gold reserves. “The creation of a Bullion Bank is mandated by the Financial Sector Development and Strengthening Law (UU P2SK) and is becoming increasingly critical. While Indonesia possesses significant gold reserves, it paradoxically imports gold to meet domestic demand,” he remarked.
Establishing a gold banking ecosystem is expected to bring multiple benefits, including saving foreign exchange reserves and balancing the supply and demand for gold in the domestic market.
“In the long term, the Bullion Bank will deepen Indonesia’s financial markets, contribute more significantly to national financing, and create optimal distribution channels for gold, benefiting both gold entrepreneurs and the general public,” Agusman explained.
A Presidential Regulation (Perpres) governing the Bullion Bank is being prepared. The Bank’s launch is targeted for the first half of 2025. The initiative has garnered widespread support from Pegadaian, a key player in Indonesia’s gold ecosystem.
Elvi Rofiqotul Hidayah, the Marketing and Product Development Director at PT Pegadaian, expressed optimism about the Bullion Bank’s potential impact. The Bullion Bank business presents positive prospects for Pegadaian, our customers, and the broader gold ecosystem in Indonesia,” she said.
To maximize this gold-centric Bank’s potential, Pegadaian has prepared various innovations supported by Bank Rakyat Indonesia (BRI), which boasts an extensive network across Indonesia, including within the gold ecosystem.
“With the advent of digital platforms like Pegadaian Digital, investing in gold has become increasingly accessible. Investors can purchase gold from as little as 0.01 grams through Gold Savings accounts. Additionally, a gold installment feature is available for those preferring to acquire gold in installments,” Elvi added.
