Airlangga Hartarto, Indonesia’s Minister of Economic Affairs, has proposed a new initiative to establish bullion banks in the country. He suggested that major financial institutions like PT Bank Rakyat Indonesia (BRI) and PT Bank Syariah Indonesia (BSI) should lead the charge in this transformation. The goal is for these banks to provide secure gold storage services and allow the precious metal to be more integrated into financial transactions.

This idea was presented during the Indonesia SEZ Business Forum 2024. Hartarto explained that Indonesia has significant gold reserves, such as the 70 tons stored at PT Pegadaian and the 60 tons produced annually by PT Freeport Indonesia. However, these reserves are not being fully utilized. Bullion banks could help unlock the potential of these gold stocks by valuing them properly and integrating them into the national economy.

Hartarto also emphasized the importance of gold as a stable investment, especially during global economic uncertainty. Gold has been seen as a safe haven for investors in times of crisis. He believes that by establishing bullion banks, Indonesia could harness its gold reserves to strengthen its economy and attract more investment.

The Financial Services Authority (OJK) is already moving forward with this plan. It has issued regulations under POJK No. 17/2024, which cover gold storage, financing, and trading activities. This legal framework is designed to facilitate bullion banking and support the monetization of gold in Indonesia.

Establishing bullion banks would not only secure Indonesia’s gold but also allow industries, like the jewelry sector, to gain more value from gold. The move could also position Indonesia as a major player in the global gold market.

With this initiative, the government aims to enhance Indonesia’s financial infrastructure. By making gold a more integral part of the economy, it hopes to improve financial resilience and create new economic opportunities.

KOMPAS