News

Jakarta, 26 February 2025 – The President of the Republic of Indonesia has officially launched the bullion business (Gold Banking Services) by Pegadaian and Bank Syariah Indonesia in Jakarta today.

This inauguration marks a significant milestone in the development of Indonesia’s national gold industry ecosystem. OJK hopes that granting business licenses for bullion activities to PT Pegadaian and Bank Syariah Indonesia will serve as the starting point for establishing an integrated bullion ecosystem in Indonesia.

This ecosystem is expected to provide broad benefits, not only for the industry but also for society. A well-supported bullion business backed by a comprehensive ecosystem will become one of the key pillars in strengthening economic resilience and growth in Indonesia.

Indonesia’s Potential in the Gold Industry

Indonesia has great potential in utilizing gold as a financial asset. In 2023, Indonesia ranked 8th among the world’s largest gold producers, with an annual production of 110 to 160 tons. Additionally, the country ranked 6th in the world in terms of gold reserves.

With substantial gold reserves and stable production, Indonesia has the potential to further optimize gold monetization to support national economic growth, particularly through the development of bullion businesses.

Bullion Business as a Financial Service Innovation

The bullion business serves as a diversified financial service product, utilizing gold monetization as a funding source to support domestic gold supply chain financing—from mining, refining, and manufacturing to retail sales.

This initiative not only expands investment options but also deepens Indonesia’s financial market through gold monetization distributed to Financial Service Institutions (LJK). Additionally, the bullion business is expected to reduce gold imports and support downstream processing (hilirisasi) in the gold commodity sector.

Regulatory Framework and OJK’s Role

To ensure the smooth operation of bullion businesses and in accordance with Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK), OJK has issued a regulatory framework under OJK Regulation No. 17 of 2024 (POJK 17/2024) on Bullion Business Operations.

Through this regulation, OJK provides opportunities for financial institutions engaged in financing activities that meet the necessary requirements to operate in the bullion business.

Scope of Bullion Business Activities

Financial institutions engaged in the bullion business can offer various services, including:

• Gold Deposits
• Gold Financing
• Gold Trading
• Gold Custody
• Other related activities as per regulations

Each financial institution can tailor its bullion business activities based on its risk appetite and business readiness.

Prudential Principles and Risk Management

OJK has designed bullion business regulations that cover prudential principles, capital requirements, risk management, transparency, and phased business implementation. With proper regulation and supervision, bullion businesses are expected to operate effectively and contribute to financial market development and overall economic growth.

Encouraging Broader Industry Participation

Moving forward, OJK hopes to see participation from more financial institutions, beyond PT Pegadaian and Bank Syariah Indonesia, to accelerate the formation of a robust bullion ecosystem and maximize the potential development of bullion businesses in Indonesia.