Indonesia launches 1st-ever gold bank service

Indonesian President Prabowo Subianto introduced the nation’s inaugural gold bank service on Wednesday, to enhance the national gold industry ecosystem and back the downstream industry.

The gold bank service is being established to bolster the gold trading ecosystem, improving downstream activities, and increasing financing opportunities for the national gold industry.

Financial service institutions are only permitted to participate in the bullion business if their main operations are related to credit distribution or financing, as per banking regulations.

In the future, general banks with a core capital of at least 14 trillion rupiahs will be allowed to engage in the bullion business. Commercial banks meeting the core capital requirements can also conduct bullion business through Islamic business units.

The gold bank service is expected to have a significant impact on the economy, with projections showing an increase in GDP of up to 245 trillion rupiahs, investment growth of 47.4 trillion rupiahs, and a rise in money circulation by 156 trillion rupiahs.

Attribution: Xinhua

Subediting: M. S. Salama