OJK Predicts Bullion Business Will Boost Retail Gold Consumption

PIXABAY/LINDA HAMILTON

OJK Predicts Bullion Business Will Boost Retail Gold Consumption

Tuesday, 25 Feb 2025

The Financial Services Authority (OJK) has stated that the future outlook for bullion banks is expected to improve. Research indicates that bullion businesses can enhance the value derived from Indonesia's gold resources, including mined gold and gold held by the public. Dian Ediana Rae, the Executive Head of Banking Supervision at OJK, noted that the development of bullion businesses will benefit three groups: the government, the community, and business operators, as well as financial service institutions.

"The bullion business has the potential to boost retail gold consumption, which will stimulate the gold industry and the overall business ecosystem, adding value of up to IDR 30-50 trillion," she mentioned in a written statement on Monday (February 24, 2025). She added that the potential for bullion banks is significant, supported by the current ecosystem that includes producers, refiners, manufacturers, wholesalers, retailers, and the public.

"This makes precious metals a means for investment and business development," she added. It is worth noting that PT Bank Syariah Indonesia Tbk (BSI) submitted a request for a license for bullion business activities to OJK on January 17, 2025, and OJK approved it on February 12, 2025. Additionally, OJK has issued a license for conducting gold banking activities through a letter of approval for PT Pegadaian's bullion business, with the reference number S-325/PL.02/2024.

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