With 2,600 Tons of Gold Reserves, the First Bullion Bank in Indonesia Officially Launched!

The First Bullion Bank in Indonesia! – A major breakthrough has just reshaped Indonesia’s financial landscape. On February 26, 2025, President Prabowo Subianto officially inaugurated the country’s first bullion bank, a pioneering initiative expected to enhance monetary stability and drive economic transformation. With Indonesia holding the sixth-largest gold reserves in the world, this move marks a significant milestone in the nation’s financial strategy.

So, what exactly is a bullion bank, and how will it benefit Indonesia? Let’s explore the details.

Standing before an audience at Gade Tower, President Prabowo Subianto announced a defining moment in Indonesia’s financial sector—the launch of the Gold Bank Service operated by Pegadaian and Bank Syariah Indonesia (BSI).

“As we approach our 80th Independence Day, I am proud to announce that, for the first time in history, Indonesia—a country with the world’s sixth-largest gold reserves—will have its own bullion bank,” said Prabowo in his address.

This historic move is part of a series of strategic policies introduced by the government to boost economic resilience. According to Prabowo, February has been a turning point, with key initiatives including the mandatory domestic retention of export proceeds (DHE SDA), the launch of the National Wealth Fund Management Agency (Danantara), and the introduction of the bullion bank service.

The First Bullion Bank in Indonesia: What is a Bullion Bank?

With 2,600 tons of gold reserves, Indonesia is taking steps to optimize its gold ecosystem by launching its first bullion bank. But what does a bullion bank actually do?

According to Tempo, a bullion bank is a financial institution that provides services such as gold deposits, financing, trading, and custody solutions. The concept has been successfully implemented in countries like Turkey and Malaysia.

In Turkey, citizens can deposit physical gold, which is then converted into digital gold accounts. Meanwhile, in Malaysia, major banks such as Maybank and CIMB offer gold investment products integrated with the Islamic financial system.

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Indonesia’s bullion bank operates under Financial Services Authority (OJK) Regulation No. 17 of 2024, derived from Law No. 4 of 2023 on Financial Sector Development and Strengthening (P2SK Law).

Currently, Pegadaian and Bank Syariah Indonesia (BSI) are the only institutions authorized by OJK to manage bullion banking services. However, State-Owned Enterprises Minister Erick Thohir has expressed hope that private financial institutions will eventually join the industry to further strengthen Indonesia’s gold reserves.

The First Bullion Bank in Indonesia: What Are the Benefits?

The establishment of a bullion bank is expected to bring significant advantages to the government, banking sector, gold industry, and the general public.

The Financial Services Authority (OJK) projects a bright future for the bullion banking industry. According to Kompas.com, bullion banking could maximize Indonesia’s gold resources, including both mined gold and privately owned gold stocks.

Dian Ediana Rae, Executive Head of Banking Supervision at OJK, emphasized that bullion banking will benefit multiple sectors—from the government and financial institutions to business owners and individual investors. The industry is expected to boost retail gold consumption and increase the gold sector’s added value by IDR 30–50 trillion.

Additionally, research by the Ministry of Economic Affairs highlights that bullion banking could help conserve foreign exchange reserves, enhance monetary stability, and support industries such as jewelry and mining by providing better financing opportunities.

Furthermore, Erick Thohir revealed that bullion banking could create up to 800,000 jobs and contribute IDR 245 trillion to Indonesia’s GDP.

“From an economic standpoint, the bullion bank will become a vital pillar in the national financial ecosystem and provide tangible benefits to the people,” Erick stated in a written statement on February 17, 2025.

Boosting Investment Interest in Indonesia

The launch of Indonesia’s first bullion bank signals a new era in investment and finance. This initiative is about more than just gold—it’s a sign that Indonesia is embracing a more advanced and diversified financial system.

With this development, local and foreign investors are increasingly drawn to Indonesia’s gold sector. However, investing in Indonesia requires more than just capital—it involves navigating regulations, securing licenses, and managing administrative processes.

This is where Bizindo comes in. Whether you need assistance with setting up a PT PMA, obtaining business permits, processing work visas and KITAS, or handling accounting and tax services, Bizindo ensures a smooth business journey in Indonesia.

Don’t let complex bureaucracy slow down your investment plans. Contact Bizindo at www.bizindo.com today and let us help you build a successful business in Indonesia!