GOLD NEWS

Indonesia approves first bullion bank

Mon Jan 06 2025

The Financial Services Authority (OJK) has greenlit state-owned pawnshop Pegadaian to start providing bullion services, following a letter of approval from the financial watchdog on Saturday. Those services will include gold deposits, gold working capital loans, corporate gold deposit services and gold trading.

In general, a bullion bank can collect gold from individuals through deposits and then lend or trade it with other parties, in the same way a regular bank operates with cash. Pegadaian president director Damar Latri Setiawan said that this is an important milestone for the company, claiming that Pegadaian is now the first company to successfully obtain a bullion business permit in Indonesia.

“Pawning is [our] core business, 90 percent of which is still dominated by gold pawning,” Damar said in a statement issued on Saturday.

Source: https://www.thejakartapost.com/