Pegadaian has Conducted a Study Related to the Establishment of the First Gold Bank in Indonesia

The Ministry of State-Owned Enterprises (BUMN) will encourage PT Pegadaian (Persero) to become the first bullion bank or gold bank in Indonesia, with Pegadaian’s subsidiary, Galeri 24, the pawn company also has a gold savings business.

Pegadaian also revealed, until now Pegadaian has conducted a study as part of the working group of bullion bank studies coordinated by the Ministry of Finance.

“In this case, OJK is also involved because it is part of the working group and has provided advice on the study of the bank’s bullion ecosystem. OJK is also currently in the stage of reviewing the establishment of bank bullion of course from the point of view and interests of regulators providing input to the Ministry of Finance,” said Corporate Secretary of PT Pegadaian (Persero) R. Swasono Amoeng Widodo.

Amoeng said, in principle his party has made a study. The next step is of course as part of the SOE group it awaits direction from the Regulator.

According to him, abroad the practice of bank bullion is very dependent on the background, gold trading conditions and the purpose of establishing bullion bank itself, so the practice in each country is different according to it. “Pawnshops are principled, will support the government’s decision in succeeding bank bullion,” said Amoeng.

Previously, Deputy Minister of BUMN II Kartika Wirjoatmodjo said that the rules regarding bullion banks were still being discussed by the Coordinating Ministry for the Economy. The Ministry of BUMN will provide support so that Pegadaian can become the first bullion bank in the country.

“Indonesia has no bank license that stores physical gold. Actually Pegadaian has done that, but still in the concept of titipan,” said the man who is familiarly called Tiko during a working meeting with Commission VI of the House of Representatives, Wednesday (22/9) yesterday.

In order to realize the plan, the Ministry of SOEs is still waiting for regulation of the establishment of bank bullion to be made by the Coordinating Ministry for Economic Affairs.

This is also one of the pending issues of discussion with the Financial Services Authority (OJK) in the establishment of Ultra Micro Holding, which is related to the approval of the merger of PawnShop subsidiaries, namely Galeri 24 which has a gold savings business, into a holding.

In response, OJK Deputy Commissioner of Public Relations and Logistics Anto Prabowo said, OJK has now been communicating and has even responded through the letter of the Chief Executive of the Banking Supervisory Related to the action plan from BRI.

“Including we are reviewing existing provisions in the public interest so that it is still in the mitigation of measurable risks,” Anto said.

In addition, related to bank bullion, according to Anto the initiative came from the government so of course OJK is ready to discuss it. “We have not received the conception related to bank bullion so we still cannot convey,” Anto said.

Coordinating Minister for Economic Affairs, Airlangga Hartarto was previously reviewing the formation of Bullion Bank in order to manage gold commodities along with Indonesia which has a very large gold mine.

“We have a large mining and one that is being reviewed by the government is the establishment of Bullion Bank,” he said in the 2021 Ministry of Trade Raker.

It is optimistic that the formation of bank bullion can provide many benefits. Such as, foreign exchange savings for the government, the industry gets a source of project financing, product diversification for banks, and the public will get a return from its deposits.