Indonesia has taken a bold step by launching the first gold-backed bullion bank in Southeast Asia. This move is part of a national strategy to retain gold reserves, stimulate economic growth, and digitize trading for millions of local customers. With the Indonesia Gold-backed Bank Launch, the country positions itself as a leader in both gold storage and digital finance in the region.
Indonesia Gold-backed Bank Launch: A Resource Powerhouse Embracing Financial Innovation
Indonesia ranks as the 8th largest gold producer in the world, with annual production ranging between 110 and 160 tons. It also holds the 6th largest national gold reserves globally, amounting to around 201 tons, spread across Bank Indonesia, PT Pegadaian, and Bank Syariah Indonesia.
However, beyond these institutional holdings, Indonesians themselves hold about 1,800 tons of gold privately. By launching a national bullion bank, the government aims to bring this massive reserve into the formal financial system—supporting liquidity, boosting savings, and encouraging transparent trade.
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Boosting the Economy and Creating Jobs
The Indonesia Gold-backed Bank Launch is projected to inject significant value into the economy. Experts estimate it could add up to IDR 245 trillion (USD 16 billion) to GDP and create 800,000 new jobs, particularly in mining, refining, banking, and gold services.
This initiative also aligns with broader efforts to localize Indonesia’s wealth by ensuring that gold mined in the country stays in the country. The policy prevents unnecessary export of valuable resources and strengthens the domestic value chain.
Promising Adoption: Real Numbers, Early Success
In just the first three months after launch, PT Pegadaian reported deposits from 31,000 customers totaling 1.1 tons of gold, while corporate accounts added 2.9 tons. Gold trading also reached Rp2 trillion in transaction value, reflecting high early trust in the system.
Bank Syariah Indonesia’s Emas platform saw 830 kg in gold transactions via its digital app as of May 2025, highlighting strong adoption of online trading in a traditionally physical market.
A Regional First in Digitized Gold Banking
With this launch, Indonesia becomes the first Southeast Asian country to offer digitized trading and domestic gold storage through formal banking channels. The bullion banks offer gold savings accounts, secured loans, real-time trading, and integrated mobile services.
The total potential value of Indonesia’s gold economy—mining, refining, export, manufacturing, and retail—is estimated at over IDR 482.6 trillion (USD 31 billion) annually. By formalizing and digitizing the sector, the country is laying the groundwork for long-term financial sustainability and independence.
Indonesia Gold-backed Bank Launch Gold Banking for a Stronger Future
President Prabowo’s administration sees the Indonesia Gold-backed Bank Launch not just as an economic tool, but a symbol of resource sovereignty. It reflects a shift toward maximizing national value from local assets while offering modern financial tools to citizens. As more gold holders participate and banks expand services, Indonesia is not only transforming how gold is stored and traded but also redefining its role in the global gold economy.
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