Indonesia's state-owned mining holding company, PT Mineral Industri Indonesia (MIND ID), is showing strong support for the initiative proposed by State-Owned Enterprises (SOE) Minister Erick Thohir, which aims to push for the establishment of a bullion bank, or a gold bank. The proposal centers around PT Aneka Tambang (Persero) Tbk (ANTM), one of the key players in the country's mining sector, to officially track and manage Indonesia's gold assets.

Dilo Seno Widagdo, Director of Portfolio and Business Development at MIND ID, shared his thoughts on the importance of this idea. According to him, a large portion of the gold owned by Indonesian citizens is not officially recorded, and this is a missed opportunity. If these gold assets were to be registered, they could be transformed into valuable resources for the country's economic growth.

He pointed out that gold transactions in Indonesia amount to approximately 70 tons per year, with a total value of around IDR 100 trillion. However, despite the substantial volume of gold traded, this activity remains largely unaccounted for in official records. Widagdo emphasized that formalizing these transactions through the creation of a gold bank could have a positive impact on the nation's economy, driving growth and increasing the financial potential of the country’s gold reserves.

Widagdo also highlighted the economic potential of the gold market. By making the country’s gold holdings more visible and official, Indonesia could unlock new avenues for investment and create more opportunities for economic development. These gold assets could serve as a catalyst for further growth by making them part of a broader, structured financial system.

The proposed bullion bank would provide a centralized platform to manage and track gold assets, allowing individuals and businesses to buy, sell, and store gold with greater ease. This move would not only help improve the financial infrastructure but also bring more transparency to the gold market in Indonesia, which could in turn attract greater investment into the country.

With the global demand for gold on the rise, establishing a bullion bank in Indonesia could provide significant economic benefits. The bank would allow gold to be used more effectively as both a financial tool and an asset for the country. For businesses, this could open up more opportunities for gold-backed financial products, while for individuals, it could provide a more secure way to invest in gold.

The idea of a gold bank is seen as an innovative step towards utilizing Indonesia’s vast natural resources more efficiently. By tracking and managing these gold assets in a formalized system, the country could unlock new financial possibilities, contributing to long-term economic growth and positioning Indonesia as a stronger player in the global gold market.

BLOOMBERGTECHNOZ