National bullion bank accumulates 153 tons of gold: ministry

Indonesia's national bullion bank has amassed approximately 153 tons of gold within 17 months of its establishment, according to the Coordinating Ministry for Economic Affairs. The announcement came during the 2026 Risk and Governance Summit in Jakarta, where Deputy Minister for Coordination of Management and Development of State-Owned Enterprises Ferry Irawan detailed the progress of the initiative. The gold reserves are stored through state-backed financial institutions such as PT Pegadaian, a state-owned pawnbroker, and Bank Syariah Indonesia, an Islamic lender. The national bullion bank was launched on February 20, 2025, with the goal of leveraging Indonesia's substantial domestic gold holdings by integrating them into the formal financial system. This move aims to enhance the country's economic resilience against global uncertainties and promote deeper integration of the domestic financial market. Ferry emphasized that the accumulation of gold represents a strategic step forward and one that the government intends to build upon. The initiative forms part of broader financial reforms aimed at maintaining investor confidence. These reforms include enhancing financial market governance, improving transparency, and further developing the domestic financial sector. In addition, the government and Bank Indonesia are working to expand the use of local currency transactions (LCT) with key trading partners. The LCT framework, introduced in 2018, has already been implemented with six countries: Malaysia, Thailand, Japan, China, South Korea, and the United Arab Emirates. To stimulate economic growth and job creation, the government has allocated People's Business Credit (KUR) amounting to Rp340 trillion (about $18.82 billion). This funding is intended to support productive sectors and drive economic activity. Additionally, the government is refining policies related to Natural Resource Export Proceeds (DHE) to ensure greater transparency and prevent practices such as transfer pricing and under-invoicing. These measures are designed to keep the financial benefits of Indonesia's natural resources within domestic banking systems. International economic outlooks for Indonesia remain optimistic despite ongoing global challenges. The International Monetary Fund (IMF) forecasts the nation's economy to grow by 5 percent in 2026, while the Asian Development Bank (ADB) predicts a slightly higher growth rate of 5.2 percent. These projections underscore the potential impact of Indonesia's financial strategies on its overall economic performance. The national bullion bank project reflects a broader effort to modernize Indonesia's approach to managing precious metals and other financial assets. By incorporating physical gold into the formal financial system, the government seeks to stabilize the economy and reduce reliance on foreign currencies. This strategy aligns with the broader objective of strengthening the domestic financial market and ensuring long-term economic resilience. The government's focus on financial reform extends beyond monetary policy. It includes measures to improve governance structures, increase transparency, and ensure that economic policies benefit all segments of society. These efforts are part of a comprehensive plan to position Indonesia as a more stable and attractive investment destination. As the national bullion bank continues to accumulate gold, the government remains committed to developing the bullion ecosystem further. This includes exploring additional ways to integrate gold into everyday financial transactions and promoting awareness among the public about the benefits of holding gold in formal financial institutions. The success of this initiative could set a precedent for other countries looking to manage their precious metal reserves more effectively.