PT Pegadaian (Persero), a state-owned company in Indonesia, is positioning itself to expand into the burgeoning bullion business. This move follows its application for a business license from the Financial Services Authority (OJK). Pegadaian's entry into the bullion sector aligns with Indonesia's financial sector reforms, aimed at boosting the national gold market.

According to Pegadaian's Corporate Secretary, Zulfan Adam, the company has prepared an innovative service framework to support its new bullion business activities. This initiative is part of Pegadaian’s broader strategy to cater to the gold ecosystem, which ranges from savings and storage services to financing and trading.

Pegadaian’s proposed expansion into the bullion business comes as a result of OJK's recent regulation, POJK 17/2024, which establishes guidelines for bullion activities. Zulfan emphasized that this regulation would help integrate gold as a financial asset, boosting financial literacy and inclusion throughout Indonesia. Pegadaian is keen to contribute to the nation's economic growth by leveraging gold as an investment and transaction medium, furthering the government's vision of “Indonesia Emas 2045” (Golden Indonesia 2045).

The gold market has vast untapped potential, according to Pegadaian. The bullion business encompasses a variety of needs, including gold savings, collateralized financing, and trading. Unlike Pegadaian’s traditional services such as gold pawning and gold-based financing, bullion activities will provide a comprehensive approach to gold's role in Indonesia's economy. The company sees this as an opportunity to bridge the gap in Indonesia's gold market and bring more accessibility to the public.

The application for a bullion business license is currently being processed by OJK, and Pegadaian is optimistic about its approval. The proposed initiative could allow Pegadaian to provide more diverse financial products based on gold, catering to both retail and institutional investors.

KONTAN