Policy

Jakarta, 14 November 2024 – Indonesia Financial Services Authority (OJK) has issued OJK Regulation (POJK) Number 17 of 2024 concerning the Implementation of Bullion Business Activities. Bullion Business Activities include business activities related to gold in the forms of Gold Deposits, Gold Financing, Gold Trading, Gold Custody, and/or other related activities conducted by financial service institutions.

This regulation provides guidelines for Financial Service Institutions (LJK) in conducting Bullion Business Activities, including the scope of such activities, requirements for financial institutions undertaking bullion business, licensing mechanisms, phased implementation, and adherence to prudential principles.

In addition, the regulation mandates the implementation of Good Corporate Governance and risk management for institutions conducting Bullion Business Activities. It also addresses anti-money laundering programs, counter-terrorism financing and counter-proliferation of weapons of mass destruction financing, antifraud strategies, consumer protection, and reporting systems.

Chief Executive  of  Financing Institutions, Venture Capital Corporations, Microfinance Institutions (PVML) of OJK, Agusman, expressed that the issuance of this regulation is one of OJK’s efforts to encourage financial institutions to bridge the gap between supply and demand for gold, including idle gold monetization in society.

This regulation is a derivation of Law Number 4 of 2023 on Financial Sector Development and Strengthening (UU P2SK), which mandates that LJK may engage in Bullion Business Activities, including Gold Deposits, Gold Financing, Gold Trading, Gold Custody, and/or other gold-related activities.

POJK Number 17 of 2024 on the Implementation of Bullion Business Activities regulates as follow:

1. Scope of Bullion Business Activities
2. Requirements for financial institutions conducting bullion business
3. Mechanisms of licensing for Bullion Business Activities
4. Phases of implementation of Bullion Business Activities
5. Application of prudential principles
6. Good Corporate Governance and Risk Management for financial institutions conducting bullion business
7. Implementation of anti-money laundering programs, counter-terrorism financing, counter-proliferation of weapons of mass destruction financing, antifraud strategies, consumer protection
8. Reporting requirements

POJK Number 17 of 2024 on the Implementation of Bullion Business Activities becomes effective upon its enactment date.

Click here for POJK Number 17/ 2024