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🇮🇩 Indonesia /Economy & Trade

Indonesia's Growing Gold Demand Spurs Bullion Bank Expansion

From Tempo · (4h ago) Indonesian

Summarized and contextualized by DistantNews.

TLDR

  • Indonesia's growing domestic demand for gold offers opportunities to develop local production and optimize existing resources.
  • Gold bullion imports are projected to increase significantly, with Australia, Hong Kong, Singapore, Japan, and Switzerland remaining major suppliers.
  • Bullion banking, a business activity within financial institutions, is seen as a strategic move to strengthen Indonesia's national economy and expand public investment access.

Indonesia's burgeoning demand for gold presents a golden opportunity, not just for consumers, but for the nation's economic self-sufficiency. As Tempo's analysis highlights, the Financial Services Authority (OJK) recognizes this surge as a catalyst for developing domestic production and maximizing our rich gold resources. This isn't merely about individual investment; it's about building a robust national gold ecosystem, from extraction to the consumer.

the increasing national demand for gold presents an opportunity to develop domestic production capacity and optimize existing gold resources within the community.

— Iwan PartogiIndonesia's Financial Services Authority (OJK) Financing Institution Development Analyst Iwan Partogi stated that the increasing national demand for gold presents an opportunity to develop domestic production capacity and optimize existing gold resources within the community.

The figures are striking: Indonesian gold bullion imports have seen an average annual growth of 29.10 percent between 2016 and 2025. While we continue to rely on international suppliers like Australia and Singapore, the push towards domestic capacity is crucial. The P2SK Law provides the legal framework for bullion banking, integrating this activity into existing financial institutions and streamlining the process.

Pak Prabowo's simple dream is that every individual should have gold, and should have the opportunity to own gold.

— Rico WardhanaBSI representative Rico Wardhana stated that BSI currently manages around 23 tons of gold, and that gold trading activity through bullion banking has continued to experience significant growth since its launch in 2025. 'Pak Prabowo's simple dream is that every individual should have gold, and should have the opportunity to own gold,' Rico said.

Furthermore, the emphasis on regulated digital gold trading, as explained by Bappebti expert M. Sis, is vital. Ensuring that digital trades are backed by physical gold and adhere to strict anti-money laundering and terrorism financing protocols protects the public and maintains the integrity of our market. This regulatory oversight is key to fostering trust and stability.

bullion banking is a strategic step for the government in developing a national gold ecosystem from upstream to downstream.

— Rico WardhanaRegarding the banking industry, BSI representative Rico Wardhana assessed that bullion banking is a strategic step for the government in developing a national gold ecosystem from upstream to downstream.

BSI's experience, managing 23 tons of gold and seeing over a million gold accounts opened since 2025, demonstrates the public's appetite and the success of accessible gold ownership, starting from just Rp50,000. As BSI representative Rico Wardhana notes, this aligns with a vision for widespread gold ownership, strengthening our economy and broadening investment avenues for all Indonesians. This initiative is more than just financial; it's about empowering our citizens and building national wealth.

digital gold trading regulations were established to prevent the practice of trading in non-physical gold, which could potentially harm the public.

— M. SisHe explained that Bappebti implements a delivery versus payment (DVP) system, ensuring the physical gold is available before a transaction takes place. Furthermore, all traded gold must come from legal sources and be free from money laundering, terrorism financing, or other illegal sources. 'digital gold trading regulations were established to prevent the practice of trading in non-physical gold, which could potentially harm the public,' he explained.
DistantNews Editorial

Originally published by Tempo. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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