Officially Launches Gold Bank, Checks Recommendations For This Stock Menu

JAKARTA - The President of the Republic of Indonesia, Prabowo Subianto has inaugurated the services of the gold bank Pegadaian and Bank Syariah Indonesia today, Wednesday, February 26.

"By saying Bismillahirrahmanirrahim this afternoon, Wednesday, February 26, 2025, I am Prabowo Subianto, the President of the Republic of Indonesia hereby inaugurate the Pegadaian Gold Bank and BSI Services," said Prabowo, February 26.

Vice President Marketing, Strategy and Planning Kiwoom Sekuritas Oktavianus Audi assessed positively with the presence of new services through bullion service in Indonesia.

According to him, this has the potential to increase gold liquidity and can encourage the storage of more domestic gold reserves.

"The establishment of a bullion bank in Indonesia can be a strategic step to strengthen the national economy through optimizing the management of gold resources and supporting local mining companies," he told VOI, Thursday, February 27.

However, Audi sees that there are also challenges that can be faced when the price of gold drops, so there can be a decrease in the value of its assets and also investors tend to refrain from investing in gold products so as to reduce the bank's bullion income.

As for Thursday 27 February, gold prices decreased to the level of 2,900 US dollars per toz, driven by the strengthening of the USD index and also the plan to impose a 25 percent reciprocal rate on European products.

However, Audi believes that amid the uncertainty of the global economy, gold will remain an alternative asset as hedging and also diversify investments.

Audi estimates that the price of gold until the end of the first quarter of 2025 will tend to be depressed in the range of US$2,750 per toz to US$2,860 per toz.

Meanwhile, until the end of 2025, Audi estimates that the price of gold will still tend to be positive with a target of around 2,900 US dollars per toz of up to 2,970 US dollars per toz.

In addition, Audi assesses that shares that are positively correlated with the existence of bullion banks are banks that have a bullion bank license such as BRIS and BBRI through Pegadaian subsidiaries and also gold producer issuers such as UNTR.

According to him, BRIS will benefit in line with business expansion in the gold product segmentation.

Therefore, Audi recommends buying BRIS shares with a target price of IDR 3,400, UNTR shares with a target price of IDR 30,150, and ANTM shares with a target price of IDR 1,900 per share.