The development of bullion banks in Indonesia, involving Pegadaian and Bank Syariah Indonesia, has begun to show a positive trend. In the initial phase of operations, gold transactions reached approximately IDR 2 trillion, equivalent to 1.2 tons of gold, while corporate gold deposits approached 3 tons.
An economist from the Faculty of Economics and Business at Universitas Gadjah Mada, Wisnu Setiadi Nugroho, Ph.D., views this development as an early signal of gold’s strengthening role in the national financial system.
“Globally, bullion banks have succeeded in deepening gold markets as well as providing liquidity and risk management within the financial system,” he stated in a written release on Wednesday (April 1, 2026).
He explained that global gold demand increased significantly between 2024 and 2025. Central banks worldwide collectively hold more than 36,000 tons of gold reserves, while annual global demand has exceeded 4,000 tons. Rising geopolitical risks and monetary uncertainty drive this condition, leading to an increasing perception of gold as a safe-haven asset.
In this context, the presence of bullion banks can strengthen the depth and resilience of financial markets, particularly in developed countries. However, Wisnu emphasized that this function has not yet fully impacted the real sector.
“Nevertheless, it is not clear to me that bullion banks are in it to create jobs or boost industrial output,” he explained.
Nevertheless, Wisnu noted that the characteristics of Indonesia’s gold market, still dominated by retail and physical ownership, pose challenges of their own. Unlike countries with established bullion hubs, Indonesia’s gold market remains largely physical. As a result, the current focus is on strengthening the financial sector rather than expanding the real sector.
Furthermore, Wisnu pointed out that the rise in gold prices throughout 2025 has also contributed to the growth of bullion banks. With global gold prices ranging from USD 2,300 to USD 2,400 per ounce, public interest in gold as a store of value has increased significantly. This condition has driven higher transaction volumes and increased gold deposits in financial institutions, while also strengthening incentives to formalize gold ownership.
“Sustainable growth will depend on institutional trust, regulatory clarity, and product innovation,” he added.
Wisnu highlighted several challenges in developing bullion banks in Indonesia. According to him, bullion banks need to focus on financial incentives, strong security and transparency, integration with other financial products such as wealth and retirement planning, and financial literacy efforts to educate the public on the advantages of using bullion banks compared to storing gold informally at home.
He also noted that Indonesian society has unique characteristics. Households tend to store physical gold in jewelry or as savings. It takes an estimated 1,800–2,000 tons of gold to meet the private holdings of Indonesian households, most of which is in the form of jewelry or small gold bars kept at home.
“The potential is actually quite large. The key is how to convert gold, which has so far been a passive asset, into a productive financial instrument,” Wisnu said.
He emphasized that bullion banks must ensure that the gold they store remains available for financing. For instance, gold can serve as collateral or support gold-based financial products. Without such productive use, the broader economic impact will remain limited.
Wisnu added that trust is a crucial factor. Many people still prefer to store gold physically because it is considered safer and under direct control. Therefore, stronger regulation, greater transparency, and stronger legal protections are needed to increase public trust.
Institutions such as Pegadaian can act as a bridge, given their long-standing experience in gold-based savings and financing services. Meanwhile, integration with Bank Syariah Indonesia can further strengthen gold’s position in financial planning.
“Ultimately, encouraging people to store gold in banks is not just about returns, but about building trust and ensuring that gold remains safe, more liquid, and beneficial for the economy,” Wisnu concluded.
Report by: Kurnia Ekaptiningrum
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