The government has appointed state-run pawnbroker PT Pegadaian and state-owned Bank Syariah Indonesia (BSI) to provide the nation's first bullion depository service.
Prabowo inaugurated the historic service by placing a dummy gold bar into a treasure box at the Gade Tower in Jakarta on Wednesday.
The president noted that the launch of the bullion bank coincides with Indonesia's 80th anniversary of Independence Day, which will be celebrated in August this year.
He also expressed appreciation to all parties involved for their significant contributions to the lengthy process of establishing the country’s first bullion depository service.
"It took this nation quite a long time, about four years, to prepare for this bullion bank," he remarked.
The president expressed optimism that the newly launched depository service will help increase Indonesia's gross domestic product by Rp245 trillion (nearly US$15 billion), generate 1.8 million jobs, and strengthen the country's foreign exchange reserves.
He explained that the bullion bank's operations would enable Indonesia to manage and store its gold resources domestically, ultimately reducing the outflow of gold to foreign services.
Coordinating Minister for Economic Affairs Airlangga Hartarto, State-Owned Enterprises (SOEs) Minister Erick Thohir, President Director of Pegadaian Damar Latri Setiawan, and President Director of BSI Hery Gunardi, among others, accompanied President Prabowo at the event.
The plan for the bullion bank's launch was first announced by the president at the Merdeka Palace in Jakarta on February 17.
He explained that establishing the bullion bank is essential to keep gold reserves mined domestically within Indonesia.
Meanwhile, on January 9, SOEs Minister Thohir highlighted that the government's initiative to establish a bullion bank is driven by Indonesia's growing capacity to manufacture gold bars.
Additionally, he noted that a national bullion bank is also expected to support the downstreaming of gold commodities.
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Translator: Fathur R, Tegar Nurfitra
Editor: Azis Kurmala
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