The Financial Services Authority (Otoritas Jasa Keuangan or OJK) has highlighted the pressing need to establish bullion business operations in Indonesia. This initiative is in line with the mandate outlined in Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (Undang-Undang tentang Pengembangan dan Penguatan Sektor Keuangan).
Indonesia holds a unique position as both a leading gold producer and one of the world’s largest gold reserve holders. Despite this, the country remains reliant on gold imports to meet its domestic demand. Establishing a bullion business ecosystem could significantly reduce foreign exchange expenditures and act as a bridge, connecting suppliers with the domestic gold market.
Moreover, the long-term benefits of bullion business operations include supporting the deepening of Indonesia’s financial markets and contributing more substantially to national financing needs. This initiative aims to optimize gold distribution, ensuring it meets the requirements of gold entrepreneurs, manufacturers, and the general public.
To achieve these objectives, OJK has been actively collaborating with the government, industry players, and other stakeholders to develop bullion business operations that will positively impact Indonesia’s financial services sector and broader economy. Looking ahead, there is optimism about the growth potential of the bullion business, with expectations of continued expansion in tandem with the evolving economic conditions of Indonesian society and its financial sector.
To provide regulatory clarity, OJK issued Regulation No. 17 of 2024 on the Implementation of Bullion Business Operations on November 14, 2024. This regulation outlines various bullion-related business activities, including gold deposits, gold financing, gold trading, gold custody, and other gold-related services provided by Financial Service Institutions.
If you have further inquiries about this topic, Schinder Law Firm is here to assist. As one of Indonesia’s leading corporate law firms, we have extensive experience handling matters related to financial services and bullion business operations. With a team of highly skilled corporate and civil lawyers, we are ready to provide expert advice and consultation. For further information, please contact us at info@schinderlawfirm.com.