ASIATODAY.ID, JAKARTA – Indonesia has enormous gold potential with gold reserves reaching 2,600 tons and there is a potential of around 1,800 tons of gold in society which can be integrated into the national economy and support the downstream policy promoted by the Government.
In order to optimize this potential, the Government launched the Bullion Business Activity which was inaugurated directly by President Prabowo Subianto at the Inauguration of the Pegadaian Gold Bank and Indonesian Sharia Bank Services at The Gade Tower, Jakarta, on Wednesday, February 26 2025.
“Today, approaching 80 years of our independence, we are proud that for the first time in history, the Indonesian nation, which has the 6th largest gold reserves in the world, will have a gold bank,” said President Prabowo Subianto.
Meanwhile, the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto, explained that in accordance with the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, Bullion Business Activities are business activities related to gold carried out by financial service institutions (banks and non-banks), including savings, financing, trading and safekeeping of gold, as well as other activities.
“In society, the amount of gold is large, 1,800 tons, which is estimated at around IDR 300 trillion now. So that with this gold bank it can be capitalized to be used as collateral, savings, and can increase sources of financing for family needs. “With the future production of gold at Freeport (SEZ Gresik), the amount of gold every year could increase by 50 tons to 60 tons,” said Airlangga.
Implementation of Bulion Business Activities is a strategic step that is in line with the principles of natural resource management by the state to provide optimal benefits for the national economy.
Based on a study from McKinsey, the implementation of Bulion Business Activities is projected to increase Indonesia’s Gross Domestic Product by up to IDR 245 trillion in the next few years as well as attract investment of IDR 47.4 trillion and increase money circulation by IDR 156 trillion.
Bulion Business Activities can also act as a standby buyer for domestic gold production and a standby supplier for the domestic jewelry industry. Demand for gold/silver jewelry products in Indonesia is projected to continue to increase with a growth rate of 1.5% per year, which will make us import more than 70 tons of finished gold in 2020.
Apart from that, Bullion Business Activities can be a forum for investment development through various gold-based investment instruments, such as gold savings and gold deposits, as well as being a safer and more profitable savings instrument, which allows people to more easily prepare funds for Hajj or Umrah. (AT Network)
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