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View all search resultsLegislator suggests gold export ban to boost bullion banking
Indonesia produces about 160 tonnes of gold annually but retains relatively little domestically.
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President Prabowo Subianto inaugurated the country’s first bullion banking service on Wednesday in a bid to capture more value from its vast gold reserves and accelerate growth. Southeast Asia’s largest economy is home to the world’s sixth-largest gold reserves, but much of its mined gold is stored overseas.
(Courtesy of/Presidential Secretariat)
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senior legislator is proposing a ban on gold exports to support the development of bullion banking in the country and to bolster national gold reserves amid ongoing global economic uncertainty.
Mukhamad Misbakhun, chairman of House Commission XI, which oversees financial affairs, noted that gold stands out as a more stable investment compared to other instruments during periods of economic turbulence.
He urged the government and the central bank to treat gold not merely as a commodity, but as a core component of Indonesia’s monetary resilience.
“I imagine the Indonesian government will prohibit gold exports under the bullion system. Gold will not be allowed to be exported,” he said during an event hosted by the Institute for Development of Economics and Finance (INDEF) in Jakarta on Tuesday.
Misbakhun highlighted the country’s strong production potential. PT Freeport Indonesia (PTFI) alone produces around 64 tonnes of gold annually. When factoring in other major producers, such as PT Amman Mineral Internasional (AMMAN), the figure could reach up to 200 tonnes per year.
“For Bank Indonesia, it is possible to absorb this gold as part of Indonesia's reserves. These are opportunities that should be pursued going forward,” he said.
Misbakhun also suggested that Indonesia could emulate global institutions such as the London Bullion Market Association (LBMA) and the Chicago Mercantile Exchange (CME), both of which facilitate international gold trading by developing a robust gold custodian and reserve system.
