Prabowo to Inaugurate Indonesia’s First Gold Bank on February 26, 2025
JAKARTA, investortrust.id – President Prabowo Subianto will inaugurate Indonesia’s first gold bank on Wednesday, Feb. 26, 2025, as part of an initiative to retain domestically mined gold within the country.
“We will establish a gold bank. Until now, Indonesia has not had a bank for our gold. As a result, much of our gold is mined and flows abroad. God willing, we will inaugurate it on February 26,” Prabowo said during a press conference at the Merdeka Palace in Jakarta on Monday, Feb. 17, 2025.
A New Era for Gold Banking in Indonesia
The initiative follows earlier statements by State-Owned Enterprises Minister Erick Thohir, who emphasized the need for Indonesia to establish its own bullion bank—a financial institution specializing in gold storage and transactions. Such a bank would introduce a new way for Indonesians to save by investing in gold.
“We currently do not have a bullion bank. If this is established, the public will start recognizing gold as a form of savings. We already have Islamic banks and Pegadaian (Indonesia’s state pawnshop), and now we are encouraging people to start saving in gold,” Erick said in Jakarta on Thursday, Nov. 7, 2024.
Indonesia holds the world’s sixth-largest gold reserves, totaling 2,600 tons. However, in terms of physical gold bullion reserves, the country ranks 43rd, with only 78.5 tons.
“This bullion bank will increase our reserves. The 78.5 tons can continue to grow, not just through state efforts but also with public participation, ensuring the economy strengthens over time,” Erick added.
Regulatory Framework and National Gold Council
The Financial Services Authority (OJK) highlighted the importance of a well-integrated ecosystem to support bullion banking operations. A crucial component of this ecosystem will be the formation of a National Gold Council, responsible for regulatory oversight and supervision.
“In countries that have successfully implemented bullion banks, a National Gold Council is always in place. Their role extends beyond financial regulations to overall governance,” said Ahmad Nasrullah, Head of OJK’s Department for Financial Institutions, Venture Capital, Microfinance, and Other Financial Services.
During the Seminar on Bullion Financial Services in Indonesia: Opportunities and Challenges at the Jakarta Convention Center (JCC) on Tuesday, Feb. 11, 2025, OJK Executive Head for Financing Institutions, Venture Capital, Microfinance, and Other Financial Services, Agusman, confirmed that the regulator is drafting a roadmap to support the development of the gold banking ecosystem.
“We are preparing a roadmap. This includes developing an ecosystem to support bullion banking, including the establishment of a gold council,” Agusman said.
He further noted that countries with active bullion banking industries typically have a structured gold council. “We are learning from other nations and preparing the necessary framework,” he added.