What is a Gold Bank?

Jakarta, Pintu News – Reporting from VOI ID, the Indonesian government plans to establish a gold bank or bullion bank. The plan to establish a gold bank in Indonesia has received positive responses from various parties, as well as being predicted to be the first gold bank owned by the Indonesian government.

In general, a gold bank is an institution that specializes in precious metal transactions such as gold and silver, including export-import activities and gold storage services. This article will further discuss what a gold bank is.

What is a Gold Bank?

Based on Law Number 4 of 2023 on Financial Sector Development and Strengthening, bullion banking or gold bank is a business activity related to gold through various forms of services, such as savings, financing, trading, custody, and other services provided by financial services institutions. This provision establishes a legal basis for the implementation of bullion-based services while encouraging financial inclusion by presenting a safe, orderly, and supervised gold transaction framework.

Read also: Here are 5 Ways to Check Genuine Antam and Its Certificate

The implementation is then regulated in more detail through OJK Regulation Number 17 of 2024 concerning the Implementation of Bullion Business Activities (POJK 17/2024) which came into force on October 18, 2024. This regulation contains technical guidelines for the implementation of bullion services, including licensing provisions and arrangements for the integration of sharia principles where relevant.

Purpose of Gold Bank

The establishment of a gold bank in Indonesia is aimed at deepening the national financial sector so that people have more flexible investment options. In addition, the gold bank is expected to provide legal certainty for people who want to place funds in the form of gold savings.

According to VOI ID, the government previously had institutions that provided gold savings facilities, namely Pegadaian and PT Antam Tbk. The then Minister of Finance, Sri Mulyani, stated that this initiative was basically also an effort to improve existing practices, for example Pegadaian services, which had not been specifically focused on gold management.

In the future, gold bank supervision will be carried out by the Financial Services Authority (OJK) because there is an element of investment management. The goal is to make supervision more integrated and minimize the potential for arbitration or disputes.

Read also: What is UBS Gold?

Benefits of Gold Bank

Based on Global Mine Production data, Indonesia is ranked 9th as a gold producing country. In 2021, Indonesia’s gold production was recorded at 117.5, while in 2019 it reached 180 tons.

However, despite the relatively large production capacity, gold storage and processing facilities in the country are considered inadequate. Therefore, the establishment of a bullion bank is also seen as important to reduce the industry’s dependence on Singapore’s bullion banks.

With the presence of a bullion bank or gold bank, Indonesia is projected to gain greater economic benefits, while reducing the need for the government to issue an import tax exemption letter (SKB) for gold commodities. On the other hand, a gold bank has the potential to expand financing sources for the industrial sector, encourage diversification of banking products, and help save foreign exchange.

In addition, the gold bank scheme is also considered to increase the attractiveness for foreign buyers. Foreign customers could potentially buy gold bars from Indonesia due to more competitive prices and cost efficiencies, including reduced logistics costs that are usually incurred when bringing physical gold from abroad to Indonesia.

Gold-Based Crypto: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Pax Gold (PAXG), a gold-backed crypto asset launched by developer Paxos Standard (PAX) in September 2019. In the form of an ERC-20 token running on the Ethereum (ETH) blockchain, PAXG can be traded on various exchanges and is a more accessible alternative for traders to start investing in gold.

The main objective of PAXG is to increase the ease of trading gold, given that physical gold is cumbersome to divide into small units and lacks flexibility in terms of storage and delivery.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Aditya Kesha W. Bullion Banking in Indonesia: A Legal Overview of the Emerging Industry. Accessed on March 9, 2026
• VOI ID. What Is Bank Gold Indonesia? This Is The Explanation. Accessed on March 9, 2026