Indonesia Launches First Bullion Bank to Strengthen Gold Market and Economy
Prabowo Inaugurates Indonesia’s Bullion Bank, Boosting Domestic Gold Investment
By Falito Villienuve Tandra, Jason Alexander, Muhammad Fazli Rabbaani, Aisyah Rizki Adinda, and Valda Alesia Darmica
January 24, 2025 at 16:30 GMT+7
Indonesia has officially launched its first bullion bank on Wednesday (2/26), a historic development in the country’s financial and commodities sectors. Established under President Prabowo Subianto’s administration, the bullion bank aims to enhance Indonesia’s gold industry by enabling efficient storage, trade, and monetization.
This initiative is expected to provide a structured and secure platform for gold transactions, reducing the need for individuals and institutions to rely on overseas markets. By strengthening domestic gold liquidity, the bank also contributes to economic resilience and financial security.
Additionally, the establishment of the bullion bank aligns with Indonesia’s broader strategy to optimize natural resources and promote self-sufficiency in gold trading. With a strong regulatory framework, the bank is set to become a pivotal institution in Indonesia’s financial landscape.
President Prabowo speech at Indonesia’s Bullion Bank Launch | Source: Biro Pers Sekretariat Presiden
The launch of Indonesia’s first bullion bank is expected to generate far-reaching economic benefits by introducing a structured system for gold-based financial products. By providing a secure platform for trading and storing gold, the bank helps stabilize the domestic gold market while reducing speculative risks.
This initiative is also designed to minimize capital outflows by encouraging local investment in gold, ensuring that a significant portion of the nation’s reserves remains within the country. Furthermore, the bank promotes financial inclusion by allowing businesses and individuals to access gold-based savings, loans, and investment instruments.
As a result, both retail and institutional investors can now integrate gold more seamlessly into their financial portfolios, fostering greater economic resilience and long-term market sustainability.
Bullion Bank launching at Gade Tower | Source: Bisnis / Maria Y. Benyamin
With the introduction of its first bullion bank, Indonesia is poised to strengthen its position in the global bullion trade. The bank provides a regulated framework for gold transactions, making it easier for domestic and foreign investors to participate in Indonesia’s gold market with greater confidence.
Additionally, the bank is expected to drive innovation in gold-backed financial products, such as gold-based savings accounts, lending facilities, and investment instruments, further integrating gold into mainstream finance.
This initiative supports the government’s broader economic strategy by enhancing financial stability, diversifying investment opportunities, and reinforcing Indonesia’s role as a key player in the international gold industry. As the bullion bank evolves, it could serve as a model for other emerging markets looking to leverage gold as a strategic economic asset.
Sources:
CNBC
CNN
Jakarta Post
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