February 18, 2025 | 06:29 pm
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto announced that PT Pegadaian (Persero) and PT Bank Syariah Indonesia Tbk. (BSI) have been designated as bullion banks.
“The government will launch a bullion bank on February 26, 2025. Two banks have been assigned: Pegadaian, a subsidiary of BRI, and BSI, which will oversee both gold trading and banking operations,” Airlangga said during the Indonesia Economic Summit 2025 in Central Jakarta on February 18.
He stressed that bullion banks are essential in mitigating risks during economic instability. “In every crisis, only two assets remain stable: the U.S. dollar and gold. We must leverage gold to reduce future risks,” he stated.
Airlangga cited Hajj savings as an example. Indonesians saving for Hajj often wait seven to ten years before departure, during which inflation erodes the value of their funds. “This creates a gap between the U.S. dollar and Hajj costs,” he explained. “But if savings are in gold, their value will align with future Hajj expenses. This is the risk mitigation the government aims to implement.”
The plan to establish a bullion bank was first announced by President Prabowo Subianto, highlighting Indonesia’s lack of gold storage facilities. “We don’t have a gold bank in Indonesia. Much of our domestically mined gold ends up flowing overseas,” Prabowo said at the Presidential Palace on February 17.
Bullion-related business activities are regulated under Financial Services Authority Regulation (POJK) No. 17 of 2024 on Bullion Business Operations. Effective October 18, 2024, this regulation is a derivative of Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK Law).
According to POJK 17/2024, bullion business activities include gold deposits, gold financing, gold trading, gold custody, and other financial services related to gold.
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