Prabowo Subianto, the former general and political figure, is scheduled to inaugurate the launch of a Gold Bank in Jakarta. The event is set to take place on Thursday, November 28, 2024, and is expected to have far-reaching implications on Indonesia’s financial landscape. The Gold Bank initiative has garnered attention from the Financial Services Authority (OJK), which views it as a significant opportunity to enhance liquidity and support more stable economic growth in the country.
OJK’s Executive Director of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services (PVML), Agusman, emphasized the potential of gold within Indonesia to be mobilized into the financial system for monetization through bullion initiatives. This move is seen as a vital step in bridging the balance between supply and demand for gold in the country.
Indonesia ranks eighth globally in gold production, with an annual output of 110 tons in 2023, according to data from the U.S. Geological Survey. Additionally, the country holds the sixth position in terms of gold reserves, totaling 2,600 tons. These statistics underscore Indonesia’s significant role in the global gold market and highlight the potential for further development in the sector.
As of December 23, 2024, two financial institutions have received approval from OJK to operate as Gold Banks: PT Pegadaian (Persero) and PT Bank Syariah Indonesia Tbk (BSI) as of February 12, 2025. PT Pegadaian currently boasts a total gold deposit balance of 31,604 kilograms, with 988 kilograms in corporate entrusted gold and 20 kilograms in gold working capital loans.
Agusman acknowledged the challenges that Gold Banks face, such as establishing a comprehensive gold banking ecosystem and mapping out risk profiles, given the nascent nature of this business activity. To address these issues, OJK has issued Regulation No. 17/2024 on the Conduct of Bullion Business Operations, providing guidelines for financial institutions to safely and effectively engage in gold banking activities for the benefit of the public.
In a bid to further support the Gold Bank initiative, OJK has set a target to finalize the Gold Business Activity Roadmap (KUBL) by August 2025. Currently, OJK is conducting a series of focused group discussions (FGD) with various stakeholders to gather essential information for the development of the KUBL Roadmap.
As preparations for the inauguration of the Gold Bank continue, the financial community eagerly anticipates Prabowo Subianto’s presence at the launch event. His involvement signifies a significant endorsement of the Gold Bank initiative and underscores the importance of this new development in Indonesia’s financial sector. The convergence of political and financial interests in this endeavor highlights the potential for a transformative shift in the country’s economic landscape, with gold playing a pivotal role in shaping its future trajectory.
