Head of the ITS Center for Industrial Development and Public Policy Studies (PSPI-KP) Dr Ir Arman Hakim Nasution MEng

ITS Campus, ITS News — The launch of Indonesia’s first Bullion Bank or Gold Bank, Wednesday (26/2), marks Indonesia’s commitment to building a better downstream process and domestic gold industry. Behind the launch, Institut Teknologi Sepuluh Nopember (ITS) has contributed as the head of the business feasibility team in realizing this program since early 2021.

Head of the ITS Center for Industrial Development and Public Policy Studies (PSPI-KP) Dr Ir Arman Hakim Nasution MEng said that this strategic step is an effort to optimize the added value of domestic gold products. “Of course, in realizing this, it needs to be accompanied by policies and regulations that support each other,” he said.

Arman emphasized that appropriate taxation policies and the application of standards must be enforced. This is so that the quality of gold in circulation is guaranteed and risks can be mitigated and minimized. “The Indonesian National Standard (SNI) for gold products must be applied to strengthen the operation of the Bullion Bank Indonesia,” emphasized the pioneer of the Indonesia Blockchain Center (IBC) ITS Chapter.

The gold downstream development scheme in Indonesia initiated by Dr Ir Arman Hakim Nasution MEng

The process of implementing these policies and standards is a transitional stage that takes a long time. However, Arman assured that this process will build domestic consumer confidence and gold trade between countries. “This transition stage will take at least two to three years,” he explained.

In addition, the Business Management Department lecturer also said that gold processing by domestic refineries needs to be encouraged. That way, the processing of gold products can be done completely independently. As a result, the gold supply chain can be shortened and distribution costs can be reduced to less.

Dr Ir Arman Hakim Nasution MEng (center with glasses) with participants of the Focus Group Discussion on the Implementation of SNI Gold Jewelry in the context of Strengthening Bank Indonesia Bullion, some time ago

Through these efforts, Arman said that the quality and price of gold produced in Indonesia will be able to compete with the international market. The stable price of gold in the country makes the reach of gold savings services at Bullion Bank Indonesia even greater. “In the future, not only individuals will be interested in using this service, but the industry will also look at it,” said Arman optimistically.

With this step, Bullion Bank Indonesia will certainly encourage the development of a more transparent and professional gold market and industry. “It is expected that Bullion Bank Indonesia can support the stability of the domestic gold market, manage the country’s foreign exchange reserves, and increase state revenue through taxes,” said Arman hopefully. (ITS Public Relation)

Reporter: Ahmad Naufal Ilham