Indonesia has launched a bullion banking system to stabilize foreign exchange by integrating gold savings into formal financial structures. President Prabowo Subianto highlighted the initiative’s goal of managing domestically produced gold. Initially, services will be offered by two state-owned entities, with potential for further license grants. The program reflects Indonesia’s status as a leading gold producer, aiming to encourage public trust in the formal financial system.
The Indonesian government has introduced a formal bullion banking system, allowing state-owned institutions to offer gold-based financial services. Prabowo Subianto, Indonesia’s president, emphasized that this initiative aims to stabilize the country’s foreign exchange by managing domestically produced gold. The initial rollout will occur at two institutions: PT Bank Syariah Indonesia and PT Pegadaian, with potential for more licenses in the future.
This initiative reflects Indonesia’s position as the largest gold producer in the region, providing an opportunity to secure gold savings from citizens. Government efforts will focus on integrating privately held gold into vaults and facilitating custody and related services. Minister of State-Owned Enterprises, Erick Thohir, urged citizens to trust the formal financial system regarding their gold assets.
During a press meeting, Senior Minister Airlangga Hartarto highlighted the cultural significance of gold for Indonesians, stating that it serves as a reliable haven during crises, alongside the US dollar. Global leaders in bullion banking include institutions such as JPMorgan and HSBC, which dominate the precious metals market.
The introduction of bullion banking in Indonesia signals a significant bid to harness the nation’s gold resources for economic stability while encouraging citizens to engage more with formal financial systems.
Indonesia’s implementation of bullion banking marks a pivotal step towards formalizing gold savings and strengthening the country’s foreign exchange stability. With the initial services being offered through two state-owned institutions, the potential expansion of licenses signifies a commitment to leveraging Indonesia’s substantial gold production. By promoting trust in formal financial entities and providing custody options, the government aims to protect and manage the wealth represented by gold in Indonesian society.
Original Source: news.bitcoin.com
