President Prabowo Subianto inaugurated the Bullion Bank services of Pegadaian and Bank Syariah Indonesia (BSI) at Gade Tower, Central Jakarta, on Wednesday, February 26. Prabowo aims for the bullion bank’s presence to strengthen the national gold industry ecosystem. 

"I, Prabowo Subianto, President of the Republic of Indonesia, hereby inaugurate the bullion bank services of Pegadaian and Bank Syariah Indonesia. Thank you," Prabowo stated in his speech. 

He explained that the bullion bank services could increase the country’s gross domestic product (GDP) by up to IDR 245 trillion and create 1.8 million new jobs. 

Additionally, he targets the bullion bank to expand and conserve foreign exchange reserves, as gold production—spanning from upstream to downstream—will be processed and stored domestically. 

"This way, it will not flow abroad. It will also help control monetary stability through gold liquidity mechanisms at the bullion bank and facilitate gold transactions within the country," Prabowo added. 

A bullion bank serves as a gold storage institution in Indonesia, providing banking services that utilize precious metal instruments. 

Minister of State-Owned Enterprises (BUMN) Erick Thohir stated that the bullion bank is intended to support and expand domestic gold production. 

The establishment of the bullion bank aligns with Indonesia’s gold production, which reaches tens of tons annually, while the country ranks as the world’s sixth-largest holder of gold reserves, with approximately 2,600 tons. 

This article is published in partnership with Katadata 

Orignal article here