Having A Gold Bank, Indonesia Can Save Foreign Exchange

Bank Emas (Photo: Unsplash)

JAKARTA - President Commissioner of HFX International Futures Sutopo Widodo said that the launch of the bullion service is expected to increase Indonesia's Gross Domestic Product (GDP) by utilizing the value of the abundant gold reserves.

"This initiative aims to enlarge savings and gold deposits, which have the potential to generate up to five times the growth in the next five years," he told VOI, Thursday, February 27.

Sutopo said the bullion service is projected to create more than 800,000 new jobs so that it can also optimize the use of gold reserves, strengthen the financial sector, and increase national economic competitiveness.

According to him, by storing more gold domestically, Indonesia will be able to save foreign exchange and reduce the flow of gold outflows to foreign services.

However, Sutopo said the gold bullion business may have a minor impact on inflation, estimated at 0.02 percent per year, the challenge in ensuring proper regulation and supervision of this service still requires significant attention.

"Gold has proven to withstand global uncertainty, serving as a safe investment amid geopolitical and economic instability," he said.

Sutopo said there were various factors, including inflation, interest rates, and geopolitical tensions, continuing to influence gold prices.

"The central bank, especially in China, has added to their gold reserves, which adds to the complexity of prospects in the market," he said.

Previously, the President of the Republic of Indonesia, Prabowo Subianto, had 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.

Prabowo said that the formation of this gold bank service could increase Indonesia's Gross Domestic Product (GDP) to Rp245 trillion and create new jobs of up to 1.8 million, expanding foreign exchange.

"It also helps save the country's foreign exchange because from upstream to downstream, gold will be processed and stored domestically and does not flow overseas," he continued.

In addition, Prabowo said that the gold bank is also claimed to be able to improve monetary stability control through the gold liquidity mechanism to gold banks and conduct domestic gold transactions.

Prabowo also expressed his appreciation and gratitude to the ranks of ministers and directors of state-owned companies that worked hand in hand until the formation of the first gold bank in Indonesia.

"I thank all the elements who have worked hard, my appreciation to the Coordinating Minister for the Economy, the Minister of SOEs, all the directors of Himbara banks, Pegadaian Directors, BSI and all those who worked hard so that today we have a pawning gold bank and BSI service ecosystem," said Prabowo.