Indonesia, one of the world's largest gold mines, plans to set up a gold bank to encourage domestic trade in precious metals.

Trade Minister Mohammad Ludfi said the government was in talks with various parties, including the central bank and the mining industry, to launch the bank by 2024.

“Our exports are to carrier countries because they have better gold trading practices, in the form of gold banks or trading companies that are better than us,” Ludfi said in the interview.

"As a gold-producing country, why do we sell it to the transporting countries?"
Indonesia is the largest gold producer in Southeast Asia, with the largest reserves in the world with the Grosberg mine in Papua.

The push to build a gold bank is part of a broader effort to climb the value chain of resource-rich Indonesian goods.

The push forced copper and nickel miners to invest in domestic refining, allowing the country to profit from a more valuable commodity than exports of raw materials.

Bullion banks are involved in activities including gold and precious metals crushing, hedging, trading and vaulting.

Global banks involved in Bullion Bank include JPMorgan Chase & Co and HSBC Holdings PLC, most of which are members of the London Bullion Market Association.

Macroeconomists and Iskander Siongkir said having a coastal gold bank would reduce the need to import gold products after being certified overseas, help develop local industries by providing financial opportunities, and allow central banks to use gold tools to manage sustainability. Fiscal Policy Coordination at the Coordinating Ministry for Economic Affairs.

Ludfi said Indonesia exports most of its gold to Singapore and Australia, which are hubs for trade rather than consumption.

The government is in talks with gold-buying countries, including members of the Gulf Cooperation Council, to form a trade agreement to compete with the "carrier nations".

Source : https://memo-x.com/indonesia-berencana-untuk-meluncurkan-bank-emas-sendiri-pada-tahun-2024/