Jakarta (ANTARA) - The government has decided to declare state-run pawnbroker PT Pegadaian as a national bullion bank to accommodate Indonesia's capability to produce gold bars, State-Owned Enterprises Minister Erick Thohir has said.
Speaking to the media in Jakarta on Thursday, he informed that the bullion bank is expected to support the downstreaming of gold commodities, aligning with the gold bar processing collaboration established between state-owned miner PT Antam and gold miner PT Freeport Indonesia.
Antam and Freeport will develop a system to produce sufficient gold reserves that will be made available as public savings, he added.
"I have said earlier that we had to pursue the establishment of our first bullion bank to accelerate downstreaming, a proposal that has been well-received by stakeholders, including the OJK (Financial Services Authority)," he said.
The minister then urged the private sector to apply for a permit to become a bullion bank in the hopes of dispensing Indonesia's gold reserves to the community, and thereby reducing reliance on the government.
Baca juga: No special hMPV handling measures at hospitals: minister
"That way, our gold reserves can be stored not only by the government but also by the public," he explained.
Earlier, the OJK issued a letter granting approval to PT Pegadaian to operate as a bullion bank offering a range of services, such as gold deposits, gold working capital loans, and gold trading.
Baca juga: Indonesia to tap BRICS for mining export, says ministry
On January 4, 2025, president director of PT Pegadaian Damar, Latri Setiawan, noted that his company has finally become Indonesia's first bullion bank following a two-year process to obtain a business permit.
"Pegadaian has been serving the community for 123 years while making improvements and offering both pawn and non-pawn services. Gold transactions account for 90 percent of our pawn activities, which form the core of our business," he said.