Jakarta, Indonesia Sentinel — Indonesia President Prabowo Subianto on Wednesday officially launched the country’s first Gold Bank as part of the government’s broader downstream processing initiative, Astacita.
“In the name of God, the Most Gracious, the Most Merciful, I, Prabowo Subianto, President of the Republic of Indonesia, hereby inaugurate the Gold Bank services of Pegadaian and Bank Syariah Indonesia,” Prabowo said during the ceremony at Gade Tower in Jakarta.
Prabowo highlighted that ahead of Indonesia’s 80th Independence Day, the country had, for the first time in its history, established a Gold Bank. He expressed gratitude to all those who contributed to making this initiative a reality, noting that the planning process spanned over four years.
“The preparation for this Gold Bank took quite some time—if I’m not mistaken, more than four years. It is my destiny to be the one inaugurating it,” the president remarked.
Prabowo emphasized that the Gold Bank is expected to bring significant benefits to Indonesia’s economy, estimating an increase of up to Rp245 trillion ($15.5 billion) in the country’s gross domestic product (GDP) and the creation of 1.8 million new jobs.
He also noted that the bank would enhance Indonesia’s foreign exchange reserves by keeping gold processing and storage within the country rather than exporting raw materials.
Strengthening the Gold Industry
The establishment of the Gold Bank is a strategic move to strengthen Indonesia’s gold industry and aligns with the government’s commitment to downstream processing under the Astacita program. Prabowo explained that, historically, Indonesia has lacked a dedicated gold storage and processing facility, resulting in most of the country’s gold being exported in raw form, generating minimal added value.
By creating a domestic Gold Bank, Indonesia aims to maximize the value of its gold resources, both from mining operations and gold owned by the public. This initiative aligns with the government’s broader strategy to enhance downstream industries, reduce reliance on raw commodity exports, and boost economic sustainability.
Expanding Investment Opportunities
The Gold Bank is also expected to provide Indonesians with easier and safer access to gold investment. The public will be able to save gold in a more affordable and secure manner while receiving education on safe and profitable gold investments.
Gold Bank operated by state-owned lender Pegadaian and Bank Syariah Indonesia, is expected to enhance transparency and security in gold transactions through standardized and regulated storage systems.
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A New Economic Growth Engine
Indonesia Gold Bank has the potential to drive substantial economic growth. By managing and storing gold domestically, the country can increase national revenue, generate employment, and expand supporting industries. The initiative also strengthens Indonesia’s foreign exchange reserves by reducing exposure to foreign currency fluctuations and bolstering economic resilience.
The launch of the Gold Bank marks a strategic milestone in Indonesia’s financial and economic development. It is part of the government’s broader efforts to optimize the country’s natural resources and improve the welfare of its people.
(Raidi/Agung)
