Indonesia is advancing its vision to create a bullion bank with the help of several prominent state-owned companies, including Bank Rakyat Indonesia (BRI), Bank Syariah Indonesia (BSI), and Pegadaian. This move aims to enhance the country's existing gold ecosystem and open new opportunities for public participation in gold-based savings.

The idea of a bullion bank has been circulating for some time, and Erick Thohir, the Minister of State-Owned Enterprises (BUMN), has now confirmed that the government is accelerating plans to bring it to fruition. During a recent event marking the sale of 30 tons of gold between PT Freeport Indonesia and PT Aneka Tambang Tbk (ANTAM), Thohir spoke about the growing importance of gold in Indonesia’s financial ecosystem. He highlighted that the country already has the infrastructure for gold savings, but it was previously fragmented. Now, with a more connected gold ecosystem, the opportunities for expansion are significant.

Currently, Indonesia ranks sixth globally in total gold reserves, which positions the country well in terms of raw resources. However, its gold bullion holdings remain limited—Indonesia holds just 78.5 tons of gold in bullion form, placing it 43rd worldwide in this category. The creation of a bullion bank could change this by providing more structured access to gold for both individual and institutional investors. This would help increase the country’s gold reserves and promote gold as an accessible, secure savings option for the public.

Minister Thohir emphasized that the bullion bank would not just be a financial institution but a tool for economic empowerment. By increasing gold ownership, the government hopes to improve the financial literacy of the population and provide them with a safe, long-term investment alternative, especially in the face of inflationary pressures.

The collaboration between BRI, BSI, and Pegadaian is key to making the bullion bank a reality. These institutions are already involved in gold savings products and have established infrastructure that can be leveraged to support the bank. Thohir has urged Hendi Prio Santoso, CEO of MIND ID, to work closely with these entities to ensure the successful implementation of the project.

The collaboration between PT Freeport Indonesia and ANTAM has also played a significant role in advancing the gold ecosystem. Freeport recently sold 30 tons of gold to Antam, which will be processed and refined in Indonesia, providing a much-needed boost to the local gold supply chain. This partnership is not just about producing gold but also about creating value within Indonesia’s own borders. As a result, the country saves significantly on foreign exchange, no longer needing to import gold.

Hendi Prio Santoso pointed out that this synergy will benefit the nation in multiple ways. The collaboration with Freeport will allow Indonesia to avoid spending up to USD 12 billion (IDR 188.46 trillion) on gold imports annually. By sourcing gold locally, the country can preserve valuable foreign reserves and reduce its reliance on international gold markets. This move is in line with Indonesia's broader strategy to industrialize its natural resources and create more domestic value.

In addition to saving foreign exchange, the bullion bank will support the government’s program to boost Indonesia’s gold industry and increase economic value. By creating a strong, self-sufficient gold economy, the country could see economic growth of up to 2% annually, or more than IDR 1,000 trillion over the next five years.

KATADATA.CO.ID