President Prabowo Launches Indonesia’s First Bullion Bank Services

By Mohd Iswandi Kasan Anuar

JAKARTA, Feb 26 (Bernama) --President Prabowo Subianto officially launched Indonesia’s first bullion bank services, which will provide gold deposit services, on Wednesday in Central Jakarta, calling the initiative a vital step toward boosting the nation’s economic growth.

Speaking at the event, Prabowo stated that the new bullion banking services, offered by PT Pegadaian and Bank Syariah Indonesia, are expected to contribute IDR 245 trillion to the country’s Gross Domestic Product (GDP) and create 1.8 million new jobs.

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“Indonesia, which holds the sixth-largest gold reserves in the world, will, for the first time, have a bullion bank. We hope this will accelerate savings and increase our gold reserves,” he said, with the event being broadcast live by the Presidential Secretariat.

According to Prabowo, the introduction of bullion banking services is expected to optimise Indonesia’s gold processing industry, spanning from upstream to downstream, saving foreign exchange and providing a tool for controlling monetary stability through gold liquidity.

He also highlighted that Indonesia’s gold production has risen from 100 tonnes to 160 tonnes annually.

The establishment of bullion banking services follows the Financial Services Authority Regulation No. 17 of 2024, which sets a minimum equity requirement of IDR 14 trillion for institutions engaged in the bullion business.

Bank Syariah Indonesia received its licence on Feb 12, 2025, while PT Pegadaian was granted its licence on Dec 23, 2024.

-- BERNAMA