BRI, Pegadaian to Establish Indonesia's First Bullion Bank

The Indonesian government has resurfaced the plan to establish a bullion bank or a bank that manages gold deposits through the merger of PT Bank Rakyat Indonesia Tbk (BBRI) and PT Pegadaian. "We are still studying the bullion bank idea as part of a working group coordinated by the Coordinating Economic Ministry and the Finance Ministry," Pegadaian president director Damar Latri Setiawan said as quoted by Kontan on Wednesday. According to Damar, Pegadaian has been trying to secure the licensing for the gold bank. He also revealed that the Financial Services Authority (OJK) had given input on the study of the bullion bank's ecosystem.

Meanwhile, BRI corporate secretary Aestika Oryza Gunarto said Pegadaian would be one of the companies incorporated in Ultra Micro Holding along with PT Permodalan Nasional Madani (PNM). "Bullion bank is expected to help develop the industry by providing financing opportunities, in line with the establishment of the ultra-micro holding," he said.