Economists Reveal Gold Bank Can Encourage Indonesia's Economic Growth

Photo: Doc. Antara

JAKARTA - Senior Economist and Associate Faculty of the Indonesian Banking Development Institute (LPPI) Ryan Kiryanto positively welcomed the launch of the Golden Bank or Bullion Bank which was recently announced by President Prabowo Subianto.

According to him, the establishment of this Gold Bank can provide benefits for various parties, ranging from gold owners to financial institutions.

Ryan explained that for the general public or those who have gold are stored at home or in other storage areas that have not provided added value or profit.

According to him, with the Gold Bank, gold owners can store their gold in institutions such as Pegadaian or Bank Syariah Indonesia (BSI), and obtain returns or profits in the form of grammar.

"With this Bullion Bank, which has gold bullion, it can be stored at Pegadain or at BSI. Now, according to a certain period of time, we will get a return or return. Now, in the context of the gold bank, this yield is known as grammar. So we will get a profit," he explained to VOI, Thursday, February 27.

In addition, Ryan also considered that with the Bullion Bank, the gold stored would be kept safe even when the storage period was over and the gold ingij was sold due to the need for money, gold prices tended to increase over time.

Historically, Ryan said the price of gold continued to increase consistently, meaning gold owners could benefit or gain capital from the difference between the purchase price and the selling price of gold.

In addition, Ryan conveyed that for institutions such as Pegadaian or Bank Syariah Indonesia (BSI), they also benefit because the gold stored by the community can be traded to other parties in need.

Ryan added that one of the main tasks of Bank Emas is to trade or trade, which will generate fee-based income for Pegadaian and BSI after the transaction is complete.

"That's if the banking language is fee-based income, now it's from the BSI side and pawnshops," he said.

Ryan said that the financial industry also benefits from the increasing number of investment instruments available to diversify investment.

"So if we have money, let's just say 100 percent of the money, we can share 25 percent of it to stocks, 25 percent to bonds, 25 percent to property, well 25 percent I save in I buy gold, then I keep my gold in the gold bank earlier," he said.

With this step, Ryan said that the development of the domestic gold industry will be more attractive and have the potential to boost the economy given the high demand for gold in the market, but often large sellers have to import gold from abroad, this is an opportunity to maximize the potential of domestic gold reserves.

Ryan said that the presence of Bank Emas can help the development of the domestic gold industry, reduce dependence on gold imports, and encourage the Indonesian economy as a whole.

Ryan conveyed that by utilizing domestic gold reserves and trading local gold, the gold industry ecosystem can develop more productively and help strengthen the Indonesian economy.

"Instead of importing from outside, it is better for domestic gold production, which is said to be a large reserve, we can explore, then we trade, so that it will make the gold industry ecosystem better, more productive, and encourage economic activity as well," he said.