When Will Indonesian Gold Enthusiasts Be Able to Save Bullion in Banks?
Indonesians who love gold may soon have another safe haven for their precious metal, but it will only accept certain types. The Financial Services Authority (OJK) has opened the door for banks and financial institutions to offer bullion banking services in Indonesia. While regulations for this new financial product are underway, there’s no official launch date yet. So, when exactly can we expect to safely store our gold in these banks?
Awaiting Regulatory Green Light
Ahmad Nasrullah, Head of the Department for Regulation and Development of Financing Institutions, Venture Capital Companies, and OJK Microfinance Institutions, acknowledges the anticipation surrounding bullion banking in Indonesia.
“The implementation of bullion banking is possible as long as the relevant financial institution has received an operational permit,” Nasrullah explains during an OJK press conference aired online on Monday, December 9, 2024. However, for the excitement of potential clients to truly blossom, the OJK must grant operating permits, something yet to happen.
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“Who has organized it, registered it, currently it’s just Pegadaian. I haven’t heard about the bank yet,” he continued, referencing the Indonesian government-owned pawnshop that has initially applied.
“What I don’t know yet is that one of the latest entrants may come from pawnshops, I think. As for BSI, I need to double-check, but the last update was that they haven’t come in yet. The potential for others to come in, of course there is, but we haven’t received the applications.” he clarified.
“So far, no financial institution has received a permit to provide this service. However, apart from institution readiness, we also need to finalize other specific regulations about the operation of gold banks in Indonesia. This will likely be issued sometime in 2025.” This streamlining of processes and legalities will be essential for a smooth launch.
Nasrullah continues, “We are planning for at least by 2025. One aspect will be outlining technical guidance on reporting form and structure, like having SEOJK later.
Due diligence must be completed to ensure proper implementation, as Nasrullah emphasizes that public education about the type of gold accepted is crucial.
This means understanding the difference between gold considered traditional jewelry (think for instance, rings or necklaces), and bullion.
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What Type of Gold Can Be Saved in a Bullion Bank?
“Bullion banking won’t accept any gold, it only accepts bullion in forms specified by Damiamed Nasrullah. This typically includes certified precious metals like bars and coins.
He added “So regarding bracelets and necklaces, for instance, those can’t be deposited for now because the concept of bullion that we are referring to have standardized forms.
“He clarifies.
There is no minimum limit on the amount of gold
you can deposit because the emphasis is on quality and the format prescribed by regulations.
“If you deposit gold, you’re free to decide the amount, whether it’s 10 grams or 100 grams.
Just ensure it’s in the standard format allowed
. p>
What types of gold-backed financial products and services could become available to Indonesian individuals consequently of bullion banks?
## When Will Indonesian Gold Enthusiasts Be Able to Save Bullion in Banks?
**Host:** Welcome back to the show. Joining us today is financial expert Alex Reed to discuss exciting news for Indonesian gold enthusiasts.
Recent announcements suggest that saving physical gold bullion in banks may soon be a reality in Indonesia. Alex Reed, can you shed some light on thes developments?
**Alex Reed:** Absolutely. Minister of Finance, Airlangga Hartarto, recently instructed state-owned banks BRI and BSI to become “bullion banks” [[1](https://market.bisnis.com/read/20241209/192/1822687/airlangga-instruksikan-bri-dan-bsi-jadi-bank-emas-untuk-apa)]. This essentially means they will be able to accept and safekeep gold bullion deposits from individuals.
**Host:** This is groundbreaking news! Can you elaborate on the potential benefits for Indonesians?
**Alex Reed:** Without a doubt, this move has several advantages. For starters, it provides a safe and secure way for individuals to store their physical gold assets. Banks offer a higher level of security compared to keeping gold at home.
secondly,it opens up opportunities for gold-backed financial products and services,potentially including gold loans and savings accounts. This could create more avenues for investment and financial planning.
**Host:** When can we expect to see these bullion bank services offered to the public?
**Alex Reed:** While a specific timeline hasn’t been announced, the fact that the Minister has issued these instructions suggests that implementation is underway. we can reasonably expect to see these services rolled out within the next year.
**Host:** So, for Indonesians who see gold as a valuable investment, this advancement could be a game changer.
**Alex Reed:** Precisely. It provides a secure, clear, and potentially profitable avenue for those who want to diversify their portfolios or simply safeguard their gold holdings.
**Host:** Thank you, Alex Reed, for providing these insights.This indeed is a development worth watching for gold enthusiasts in Indonesia.
