Amid Declining Prices, Members Of The House Of Representatives From The Golkar Faction Support The Establishment Of The Gold Bank

Illustration. (Photo: Doc. Antara)

JAKARTA - Member of Commission XI DPR/Parliament RI Puteri Anetta Komarudin supports the formation of a bullion bank or gold bank to be thoroughly studied by the government.

"The formation of this bank is expected to strengthen the country's financial services industry ecosystem. Moreover, we all know that Indonesia has the potential for abundant gold mineral wealth that reaches 30.2 million ounces. provide great benefits", said Puteri, quoted from Antara, Wednesday, March 10.

Puteri added that the government should also study best practices for developing gold banks from various countries.

"This practice is common in the world. So, I think benchmarking needs to be done to enrich and deepen understanding regarding this gold bank. Starting from regulations, business models, risk management, institutions, to monitoring mechanisms. Including considering the value of benefits that will be generated in the market, industry, and society in general", said the legislator.

She also said that last year, gold exports recorded a positive performance which reached USD 5,280 million. However, Indonesia is also faced with an increasing trend of gold imports.

"When this gold bank is formed, we must also encourage the downstream gold industry in order to optimize the processing of domestic gold commodities, both for investment and jewelry, for example", she said.

Although investment in gold instruments is considered relatively safe, the legislator reminded the government to pay attention to the volatility and market movements of gold and other valuable goods as a consideration in formulating the establishment of a gold bank in the country.

"Even though the price of gold tends to rise during a pandemic, we still need to be aware of price fluctuations due to global market disruptions in line with the movement of other investment instruments, geopolitical dynamics, and current pandemic conditions. It is still necessary to be careful and thorough studies involving the perspective of various entities such as BI, OJK, LPS, experts, industry, and society", said Puteri.