By: Putri Yuanita )*
President Prabowo Subianto officially launched the Gold Bank or bullion bank on Wednesday, February 26, 2025, at Gade Tower, Jakarta. The existence of this instrument is expected to increase national economic growth and equality.
President Prabowo in his speech stated that the bullion bank will be the main pillar in building a stronger and more stable financial system. President Prabowo emphasized that the presence of the bullion bank is a strategic step to strengthen Indonesia’s economic sovereignty and optimize the use of national gold reserves. With this gold bank, Indonesia finally has a gold-based financial system that is more structured, independent, and able to encourage economic equality.
Gold banks or bullion banks are increasingly becoming an important part of the strategy for equalizing economic growth throughout Indonesia. The government continues to strengthen gold-based financial infrastructure to optimize the potential of this sector. With the bullion bank, national gold industry players have more opportunities to manage their assets effectively and contribute to national economic growth.
Minister of State-Owned Enterprises (BUMN), Erick Thohir, stated that bullion banks have the potential to increase Indonesia’s Gross Domestic Product (GDP) by up to IDR 245 trillion and create around 800 thousand new jobs. In addition, this system will help exporters and the domestic gold industry to store and manage their gold domestically, reduce dependence on foreign markets, and add value to the national economy.
As one of the largest gold producing countries in the world, Indonesia has significant gold reserves, but its utilization is still not optimal. Chief Executive of Banking Supervision of OJK, Dian Ediana Rae, emphasized that the existence of bullion banks has the potential to strengthen the gold industry ecosystem by increasing retail gold consumption and presenting gold-based financial innovations. This step will also increase market liquidity and improve the national gold trading system.
Coordinating Minister for the Economy, Airlangga Hartarto, also emphasized that bullion banks will provide great benefits to the domestic gold industry and improve the management of state assets. With this system, gold exporters can more easily store and manage their gold domestically, which ultimately increases added value to the local economy. In addition, bullion banks also play a role in increasing Indonesia’s competitiveness in the global gold market. With a more solid financial system, Indonesia has the potential to become a gold trading center in the Asian region, on par with countries such as Dubai and Singapore.
The ease of digital gold transactions offered by bullion banks will increasingly attract investors and encourage the growth of the domestic gold market. In its implementation, the Financial Services Authority (OJK) has issued regulations that ensure that bullion banks operate safely and provide optimal benefits to the community. Two financial services institutions, namely PT Pegadaian (Persero) and PT Bank Syariah Indonesia Tbk (BSI), have obtained official permits to carry out gold bank business activities, which marks a step forward in the integration of the gold sector with the national financial system.
From a fiscal perspective, bullion banks can also be a source of income for the state through tax mechanisms, such as Value Added Tax (PPN) and Income Tax (PPh). Financial commodity analyst, Ibrahim Assuaibi, said that state revenue from this sector will increase along with the high public interest in gold investment.
With the increasing domestic gold transactions, tax revenues from this sector will contribute to the country’s financial stability. This is in line with the government’s efforts to strengthen the domestic tax base and reduce dependence on other sources of income.
The government and other stakeholders continue to strive to ensure that bullion banks not only function as a means of storing gold, but also as an instrument that drives equitable economic growth throughout Indonesia. With the support of comprehensive regulations and the increasing number of industry players joining this ecosystem, bullion banks are expected to become the main pillar in strengthening national economic resilience and accelerating the development of the commodity-based financial sector in the country.
One important aspect that needs to be considered in the development of bullion banks is strengthening digital infrastructure. Blockchain-based technology and digital ledgers can be used to increase the transparency and security of gold transactions. This system will ensure that every gold transaction made through bullion banks is properly recorded, reducing the risk of fraud and increasing investor confidence. With a transparent and secure system n, more people will be interested in using bullion banks as an alternative investment.
On the other hand, increasing public financial literacy is also the key to the success of bullion banks. The government, together with financial authorities and the banking industry, needs to conduct a broader education campaign so that the public understands the benefits and working mechanisms of bullion banks. Seminars, training, and socialization involving various stakeholders can help increase public awareness of the importance of gold investment through a safer and more integrated system.
With the various potentials and challenges that exist, the development of bullion banks in Indonesia requires synergy between the government, regulators, industry players, and the public. With a stronger gold-based financial ecosystem, Indonesia can take a bigger role in the global gold trade, while encouraging economic equality throughout the country.
)* The author is an economic observer
