The Islamic banking industry in Indonesia faces major challenges in expanding its reach and increasing its attractiveness. One solution that has begun to be discussed is the concept of a Bullion Bank or gold bank. This new financial instrument is considered a bridge to strengthen the Islamic financial sector in Indonesia. With the release of Financial Services Authority Regulation (POJK) Number 17 of 2024, Indonesia will soon have a Bullion Bank as part of the mandate of Law Number 4 of 2023 on Financial Sector Development and Strengthening (P2SK).
The Bullion Bank is a financial institution that focuses on the business of precious metals such as gold and silver. The bank manages deposits, loans, and gold trading in accordance with sharia principles. With the presence of Bullion Bank, the Islamic banking industry is expected to have more investment products that are safe, stable and based on real assets. This is a great opportunity for people who want to invest their wealth while adhering to Islamic law.
The existence of Bullion Bank is very important for Islamic banking which has stagnated. By providing gold investment services, the Bullion Bank enables diversification of Islamic banking products and attracts more customers looking for stable value assets. Currently, the gold industry in Indonesia is still dependent on Singapore for processing and sales, so the presence of a Bullion Bank in the country can optimize the economic benefits of the gold sector.
One of the main benefits of the Bullion Bank is that it makes it easier for people to invest in gold with greater security. In addition, funds collected in the form of gold can be a new source of liquidity for Islamic banking and reduce dependence on conventional-based financial instruments. This also increases confidence in the Islamic banking industry.
The potential of the Islamic economy supported by the Bullion Bank is also quite large. With gold-based financial services, Islamic banking can attract international investors who are looking for gold-based investments that comply with sharia principles. In addition, this innovative product can increase public participation in the Islamic banking system, which so far still has a limited market share compared to conventional banking.
Going forward, Bullion Bank can play a key role in strengthening the Islamic financial sector, especially in Muslim-majority countries like Indonesia. With supportive regulations in place, as well as increased public awareness of sharia-based investments, Bullion Bank has the potential to become a key instrument in accelerating the growth of a more inclusive and sustainable sharia-based economy.
