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President Prabowo Subianto inaugurated the Gold Bank Service (Bullion Pawnbroker Bank) and Bank Syariah Indonesia (BSI) on Wednesday, February 26, 2025, targeting the gold bank existence to strengthen the national gold industry ecosystem.
Bullion bank is an institution that functions as a place to store gold in Indonesia, by providing banking services using precious metal instruments.
“Gold banking services can increase gross domestic product (GDP) by up to Rp245 trillion (US$14.9 billion) and create 1.8 million new jobs,” Prabowo said.
In addition, he said that gold banks could also expand and save the country's foreign exchange because the gold production process from upstream to downstream would be processed and stored domestically.
"So that it does not flow abroad. And can also control monetary stability through the gold liquidity mechanism to gold banks and conduct gold transactions domestically," Prabowo said.
Erick Thohir, Minister of State-Owned Enterprises (SOEs), said that the existence of bullion banks aims to support and expand domestic gold production.
Meanwhile, the establishment of a bullion bank is in line with Indonesia's gold production which reaches 160 tons per year, while Indonesia's gold reserves are ranked 6th largest in the world with around 2,600 tons.
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