LPS Not Guaranteeing Bullion Bank's Gold Deposit

Gold (Photo: Unsplash)

JAKARTA - The Deposit Insurance Corporation (LPS) revealed that it does not guarantee gold deposits in gold banks or bullion banks.

LPS Research Group Director, Seto Wardono said, currently LPS only guarantees money deposits in banks so that gold commodity deposits in the newly launched gold bank have not been included in LPS guarantees.

"In us, that's what is guaranteed, so far is still savings. This is still a savings. This is also in accordance with the mandate of the law, yes, deposits and the same as that," said Seto during the Break of Fasting with LPS quoted on Tuesday, March 18.

Seto added that the bullion bank is a new business activity in Indonesia with gold commodities and so far, based on the law, only money savings are guaranteed by LPS.

Seto also did not deny that there are deposit guarantor institutions in other countries that also guarantee gold bank deposits such as Turkey and the United States.

"Maybe not a lot, yes, that guarantees this gold deposit commodity. But we still haven't done it yet," said Seto.

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.