President Prabowo Subianto officially launched Indonesia's first bullion bank at The Gade Tower, Senen, Central Jakarta, on Wednesday (February 26, 2025). The inauguration followed the approval from the Financial Services Authority (OJK) for PT Bank Syariah Indonesia Tbk (BSI) and Pegadaian to conduct bullion business activities. BSI received its license on February 12, 2025, while Pegadaian secured it on December 23, 2024.

The event was marked by Prabowo placing a gold bar into a designated treasure box. "With the blessing of Bismillahirrahmanirrahim, on this Wednesday, February 26, 2025, I, Prabowo Subianto, President of the Republic of Indonesia, hereby inaugurate the gold bank services of Pegadaian and Bank Syariah Indonesia," said Prabowo during the ceremony.

According to Prabowo, establishing the bullion bank took over four years of preparation. "If I'm not mistaken, it took more than four years, and it is my fate to officiate it," he stated.

The President expects the bullion bank to boost Indonesia's GDP by approximately Rp 245 trillion, create 1.8 million new jobs, strengthen the country’s foreign exchange reserves, and reduce the need to send gold abroad, as it will now be managed domestically from upstream to downstream.

The inauguration was attended by key figures, including Minister of State-Owned Enterprises Erick Thohir, Minister of Finance Sri Mulyani Indrawati, Minister of Investment and Head of Danantara Rosan Perkasa Roeslani, TNI Commander Agus Subiyanto, Minister of State Secretariat Prasetyo Hadi, Coordinating Minister for Economic Affairs Airlangga Hartarto, and Bank Indonesia Governor Perry Warjiyo.

The plan to establish the bullion bank had been announced by Prabowo the previous week. He had previously declared on January 26, 2025, that Indonesia would form a gold bank, emphasizing that the country had never had a dedicated gold bank before. "We will form a gold bank. A gold bank. We’ve never had a bank for gold," Prabowo remarked at the Merdeka Palace, Central Jakarta.

According to OJK's calculations, the bullion bank is projected to generate added value in the gold industry, estimated at Rp 50 trillion. OJK's research also highlights that the bullion business can enhance the value of Indonesia's gold resources, including mined gold and public gold holdings.

"The bullion bank business has the potential to increase retail gold consumption, driving the growth of the gold industry and the broader gold ecosystem, with added value reaching Rp 30-50 trillion," said OJK's Executive Head of Banking Supervision, Dian Ediana Rae.

Erick Thohir pointed out that Indonesia holds the world’s sixth-largest gold reserves, totaling around 2,600 tons. However, the country's gold bullion reserves remain significantly lower than Singapore's, standing at just 78.3 tons.

"This means we're ranked 43rd in the world. If we look at the US economy, their reserves are nearly 8,000 tons," Erick explained.

PHOTO: LIPUTAN6.COM

This article was created with AI assistance.