Indonesia mulls gold export ban to build bullion banking system
Indonesia ranks as the world's sixth-largest gold reserve holder, producing an estimated 160 to 200 tonnes annually, mainly through major state-owned enterprises. Despite this, much of the mined gold is held or traded abroad. In 2024 alone, Indonesia exported gold worth 5.4 billion USD while reimporting 2.6 billion USD worth of the metal.
Indonesia eyes gold export ban to power bullion banking push. (Photo: observerid.com)
Jakarta (VNA) – A senior Indonesian lawmaker has proposed banning gold exports to accelerate the development of a domestic bullion banking system, boost national gold reserves, and better leverage the ♑country’s vast gold resources amid ongoing global eco🃏nomic uncertainties.
Speaking at a recent forum organised by the Institute for Development of Economics and Finance (INDEF) in Jakarta, Mukhamad Misbakhun, Chairman of Commission XI of the House of Representatives, stressed that gold should be treated as a strategic component of national monetary policy.
Indonesia ranks as the world's sixth-largest gold reserve holder, producing an estimated 160 to 200 tonnes annually, mainly through major state-owned enterprises. Despite this, much of the mined gold is held or traded abroad. In 2024 alone, Indonesia exported gold worth 5.4 billion USD while reimporting 2.6 billion USD worth of the metal.
Misbakhun called this a structural paradox and urged the establishment of a robust domestic bullion banking system. He recommended Indonesia adopt global models such as the London Bullion Market Association (LBMA) and the Chicago Mercantile Exchange (CME) to develop a transparent domestic gold trading and regulatory ecosystem.
Earlier in February 2025, President Prabowo Subianto launched Indonesia’s first bullion banking service in collaboration with two state-owned firms - Pegadaian, a subsidiary of Bank Rakyat Indonesia and Bank Syariah Indonesia (BSI). The initiative aims to quintuple gold savings and expand gold-related financial transactions over the next five years.
A bullion bank is a specialised financial institution focused on precious metals, offering services such as gold deposits, trading, financing, and custody, regulated by Indonesia’s Financial Services Authority (OJK).
Minister of State-Owned Enterprises Erick Thohir noted that the bullion banking sector is expected to contribute 245 trillion IDR (15 billion USD) to national GDP and create 1.8 million new jobs across the gold supply chain within five years.
While Indonesia is estimated to have around 2,600 tonnes of gold reserves, the country’s central bank holds just 201 tonnes, below regional neighbour Singapore, which holds 228 tonnes. The proposed shift aims to bridge that gap by retaining more value within the domestic economy and reducing reliance on external gold markets./.
Indonesian speed climber Leonardo clinched a gold medal in the men’s speed climbing at the 2024 Olympic Games in Paris on August 8, a historic Olympic title for Indonesia and also the first for the country in this year’s Games.
At least seven people were killed and three others injured due to landslides and flash floods that struck a gold mine and surrounding areas in Indonesia's Gorontalo province, local authorities reported on July 7.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.
The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
In the latest Indonesia-US trade agreement in July, the US administration agreed to reduce the reciprocal tariff, which was initially set at 32% by US President Donald Trump last April, to 19%.
Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31% are at least 30 years old. In 10 years, this number is expected to climb to 1,160, assuming none is sold en bloc.
The new framework is designed to ensure that incoming investments deliver tangible national benefits, such as the creation of high-quality jobs for Malaysians and the development of local company ecosystems and technologies.
Singapore led with a total of 8.8 billion USD in realised investment, followed by Hong Kong and mainland China, Malaysia, and Japan with 8 billion USD, 1.7 billion USD and 1.6 billion USD, respectively.
Thai Acting Prime Minister Phumtham Wechayachai on August 7 outlined his strategy for tackling drug problems in Thailand, aiming for a "Zero Drugs Thailand" within three months.
The US has described Malaysia's role as Chair of the Association of Southeast Asian Nations (ASEAN) as vital in helping ease tension between Thailand and Cambodia.
Cambodia and Thailand vowed not to undertake provocative actions that may escalate tensions, including entering the other side’s air space and territory, and refrain from constructing or enhancing military infrastructure.
