Indonesia, the World’s 4th Largest Gold Reserve Holder, Launches Gold Banking Services
- Publish
- 2025/08/02
- Update
- 2025/08/16
- You can read this article in 4minutes
Indonesia is one of the countries rich in natural resources, and notably ranks fourth in the world in terms of gold reserves. Leveraging this potential, the country has launched a new “Gold Banking” service to revitalize the domestic gold market.
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Introduction
Gold is considered a valuable asset worldwide and plays a crucial role in supporting economic stability and currency credibility in many countries. Despite being one of the world’s leading gold reserve nations, Indonesia had not yet established an adequate system for the distribution and management of gold.
This article presents data and video content related to gold in Indonesia and delivers news about the country’s launch of its first-ever gold banking service.
Precautions when conducting an on-site inspection in Indonesia
Some visitors consider, "My primary purpose is to conduct maintenance work at the factory, but the visa application process appears cumbersome. I will simply enter on a Visa on Arrival (VOA) and carry out the work discreetly."
However, there have been numerous cases where entering without the appropriate visa for the intended activities has resulted in significant legal and operational issues. It is therefore strongly advised to obtain the correct visa prior to travel.
Here are the types of visas and their purposes.
By the Numbers: Gold and Gold Banking in Indonesia
Indonesia’s Gold: 4th in Reserves, 8th in Production
Prepared by our company based on USGS “Gold Statistics and Information｜Annual Publications Gold PDF Format 2025”
According to the United States Geological Survey (USGS), Indonesia’s gold reserves stood at approximately 3,600 tons as of 2024. This places Indonesia fourth globally, following Australia and Russia (each with 12,000 tons) and South Africa (5,000 tons). The country’s gold production for the same year was 100 tons annually, ranking it eighth in the world.
It should be noted that the ranking of reserves can fluctuate each year due to the discovery of new mining sites and other factors.
Countries with the Largest Gold Reserves (2024)
1st: Australia & Russia – 12,000 t
2nd: South Africa – 5,000 t
3rd: Indonesia – 3,600 t
4th: Canada – 3,200 t
5th: China – 3,100 t
6th: United States – 3,000 t
7th: Peru – 2,500 t
8th: Brazil – 2,400 t
Countries with the Highest Gold Production (2024)
1st: China – 380 t
2nd: Russia – 310 t
3rd: Australia – 290 t
4th: Canada – 200 t
5th: United States – 160 t
6th: Kazakhstan, Mexico, Ghana – 130 t
7th: Uzbekistan – 120 t
8th: South Africa & Indonesia – 100 t
Reference: USGS “Gold Statistics and Information｜Annual Publications Gold PDF Format 2025”
Indonesia Launches Gold Banking Services
Although Indonesia boasts one of the world’s largest gold reserves, its gold holdings (official reserves) are ranked only in the 40s globally, reflecting relatively low ownership. Additionally, there had been no centralized system to manage gold distribution.
To address this, Indonesia launched its “Gold Banking” service in February 2025. The objective is to leverage its potential as a gold-rich country to promote economic development, enhance currency credibility, and stabilize financial policy.
At the time of launch, the Financial Services Authority (OJK) granted operational licenses to two state-owned banks: Bank Pegadaian and Bank Syariah Indonesia.
Gold banking services encompass financial activities such as gold savings, lending, trading, and safekeeping. The gold handled under this system must meet the national standard of at least 99.9% purity and comes in the form of bullion bars or plates (ingots).
President Prabowo, who attended the opening of the gold banks, stated that the gold banking service is expected to increase the country’s gross domestic product (GDP) by IDR 245 trillion (approximately USD 15.6 billion*) and create 1.8 million new jobs. He also expressed hopes that the initiative would encourage gold transactions among citizens, increase the nation’s gold reserves, and thereby strengthen Indonesia’s economic structure and fiscal independence.
There is also an anticipated benefit of enabling the tracking of previously unmonitored gold transactions through a unified and accurate system.
Customers interested in using the gold banking services can open accounts through the banks’ mobile apps or branch offices to conduct gold purchases, sales, and savings.
*Exchange rate used: 1 IDR ≒ 0.000064 USD (August 2025 actual rate)
*Reference:
Presiden RI “Presiden Prabowo Resmikan Layanan Bank Emas Pertama di Indonesia, Perkuat Kedaulatan Ekonomi”
Kompas “Apa Itu Bank Emas dan Berapa Besar Potensinya?”
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Gold and Gold Banking in Indonesia Through Video
Gold Mining and Processing
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PT Freeport Indonesia (PTFI) is one of the world’s largest mining companies operating in Central Papua, Indonesia. This video showcases the process from gold mining to pre-refining stages. According to the video description, the process includes:
- Excavating and blasting gold-containing land, which is then transported by truck
- Conveying the material to a factory via conveyor belts, where machines grind it into fine sand
- Separating and concentrating the gold, drying it, and then selling it to refineries
Typical Gold Investment in Indonesia
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Bank Pegadaian owns a subsidiary, Galeri 24, which provides services in gold and jewelry refining, production, and retail. In addition to bullion, Galeri 24 sells gold in coin form and accessories such as rings and earrings at affordable prices.
In Indonesia, it has long been common to own gold for future asset building or investment purposes. Even among younger generations accustomed to internet banking and electronic money, many still purchase physical gold and store it in files or similar containers.
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Domestic corporation
Recruitment Agency
We set up a domestic capital company in Indonesia using the name of a former employee from Japan’s Specified Skilled Worker program. At first, communication was smooth, but once the business became profitable, they claimed ownership, seized bank accounts and contracts, and disrupted client relations. A contract was in place but ineffective, leaving us to regret relying solely on trust.
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Foreign-owned corporation
Machinery Manufacturer
We hired a local consulting firm to set up our foreign-owned company in Indonesia, but responses were slow and explanations kept changing. Repeated requests for extra documents and shifting requirements disrupted our schedule, and the process took nearly a year, delaying our business launch. We learned the importance of clearly defining project management and responsibilities in the contract.
Spotlight on the Impact of Gold Banking
Despite ranking fourth globally in gold reserves, Indonesia has had low official gold holdings and lacked a sufficient distribution system. To address these challenges, the government introduced the gold banking service in 2025, establishing a public framework to manage gold savings, lending, and trading.
This initiative is expected to revitalize the domestic gold market and promote asset formation among the public. Additionally, the expansion of gold banking is anticipated to increase national gold reserves, contributing to economic stability and enhanced currency credibility.
Going forward, attention will be focused on how widely gold banking services will spread across Indonesia.
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