Indonesia Seizes Golden Opportunity with Bullion Bank Launch Amid Global Trade Tensions
Main Takeaways
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JAKARTA, investortrust.id – Indonesia’s top economic official says the launch of gold-focused financial institutions is timely, as the precious metal regains appeal as a safe haven amid rising global uncertainty and trade tensions.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the establishment of bullion banks—institutions specializing in gold-related financial services—comes at a critical time when global markets are rattled by the United States’ imposition of new import tariffs. Speaking at a national economic forum with the President in Jakarta on Tuesday, Airlangga highlighted gold's growing role alongside the US dollar in helping investors hedge against risks.
“The launch of bullion banks by the President is highly timely. Gold is now an essential hedge instrument, alongside the US dollar,” said Airlangga during the Economic Dialogue with the President of Indonesia, held at Menara Mandiri in central Jakarta on Tuesday, April 8, 2025.
According to Airlangga, two bullion banks are currently ready to operate. However, he noted that full-scale operations still require additional regulations, particularly because bullion bank transactions do not involve pawning but are structured as deposit instruments that can be collateralized.
He called on financial authorities to accelerate the integration of bullion banks into Indonesia’s national banking system.
A Response to Growing Global Risks
Airlangga warned that global economic uncertainty has deepened following the announcement of import tariffs by US President Donald Trump, which triggered a surge in perceived global risks. He noted that the world economy now faces the threat of triple shocks—simultaneous disruptions in trade, capital flows, and commodity markets—leading to turbulence in global financial markets and depreciating currencies in developing countries.
“Many global corporations are holding back expansion and investment plans, while household consumption is also slowing down,” he added.
He pointed to a sharp decline in strategic global commodities as further evidence of instability. Brent crude oil prices have fallen by 20 percent, coal prices have slipped to $97 per ton, and the price of crude palm oil (CPO) has also dropped.
“Gold is the only commodity that has seen a price increase,” Airlangga emphasized.
Domestic Inflation Under Control
Airlangga said the decline in global commodity prices is also affecting food-related products such as soybeans and wheat, along with industrial commodities like gold. While the price drop signals reduced inflationary pressures in Indonesia, he stressed that the government continues to safeguard consumer purchasing power.
In the short term, he explained, household consumption is being supported by a combination of social assistance, religious holiday bonuses (THR), and food price stabilization measures. Additional economic stimuli such as early-year tax incentives, subsidies for electric motorcycles, and property value-added tax (VAT) relief have already been implemented.