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OJK to form gold council to support bullion business
Agusman explained that the council would have a similar function to the World Gold Council in London in facilitating demand for gold.
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An official of state-owned pawnshop Pegadaian shows a small gold bar minted by state-owned diversified miner PT Aneka Tambang (Antam) in Jakarta on May 20, 2024. (Antara/Rivan Awal Lingga)
T
he Financial Services Authority (OJK) has announced plans to form a gold council to further develop the bullion businesses in Indonesia.
A bullion bank operates similarly to a conventional bank but focuses on gold rather than cash. It collects gold deposits from individuals and then lends or trades the metal with other parties.
Agusman, the OJK's supervisor for multifinance, venture capital and other financial services, said on Tuesday that it was preparing a road map to establish the council and a supportive ecosystem for the bullion industry.
“This includes a gold council,” Agusman said at an annual meeting of financial institutions.
Agusman explained that the council would have a similar function to the World Gold Council in London in facilitating demand for gold.
In October of last year, the OJK issued a regulation requiring banks and other financial institutions to have minimum core capital of Rp 14 trillion (US$856.6 million) to enter bullion services.
The regulation also bars regional development banks and microfinance institutions from offering bullion services.
