Banking - Seeing the potential of Bullion Banks in Indonesia

Banking - Seeing the potential of Bullion Banks in Indonesia The concept of a bullion bank or gold bank is gaining more attention as part of a real asset-based financial system. With great potential in driving gold investment inclusion and supporting the national gold industry ecosystem, bullion banks are expected to be game changers for the financial sector in Indonesia. On February 12, 2025, the Financial Services Authority (OJK) officially granted a bullion business operation license to Bank Syariah Indonesia (BSI), after Pegadaian had previously obtained a similar license. This step marks the beginning of a new era in gold management in the homeland. Indonesia is one of the largest gold-producing countries in the world. However, until now, the optimization of national gold resources has not yet been maximized. (Source : Kontan) Comment : The establishment of bullion banks in Indonesia represents a significant step towards developing a more integrated and efficient gold ecosystem. If implemented effectively, these banks have the potential to boost the national economy, increase financial inclusion, and position Indonesia as a key player in the global gold market. Maintain overweight for banking sector, with BBCA and BMRI as our pick and BRIS on Syariah Banking landscape.