Bullion activities, which are essentially gold (typically in the form of bars or plates of 99.9% gold content) related activities carried out by Financial Services Institutions (Lembaga Jasa Keuangan / “LJK”), cover gold saving, gold financing, gold trading, gold depository and/or other activities carried out by LJKs to support bullion activities.
Gold Saving
Saving of standardized gold (unallocated)
Gold Financing
Lending of standardized gold for a certain period of time, with compensation or profit sharing
Gold Trading
Sale and purchase of standardized gold
Gold Depository
Depositing of gold (allocated) to obtain fee based income
Bullion activities should be carried out by LJKs in three sequential stages to ensure they have proper and adequate resources and systems to support their activities and protect customers.
First Stage
Gold from gold saving may only be channelled as gold financing and gold trading up to 70%.
Second Stage
Gold from gold saving may only be channelled as gold financing and gold trading up to 80%.
Third Stage
Gold from gold saving may only be channelled as gold financing and gold trading up to 90%.
In the first and second stages, bullion activities are limited to gold saving, gold financing, gold trading and/or gold depository, while in the third stage, bullion activities may cover all bullion activities.
Only licensed LJKs, whose primary business is credit channelling or financing (other than rural banks, sharia rural banks and microfinance institutions), with a minimum health level assessment score of composite level 2, are allowed to carry out bullion activities.
So far, there are two bullion banks that have obtained approval from the Financial Services Authority (OJK), namely PT Pegadaian and PT Bank Syariah Indonesia Tbk.
Under Minister of Finance (“MOF”) Regulation No. 51 of 2025 and MOF Regulation No. 52 of 2025, which have become effective as of 1 August 2025, any purchase of bullion (emas batangan) with a value of more than Rp10,000,000, whether sourced domestically or from overseas, is subject to a 0.25% withholding tax, except for:
- Sale of gold jewelleries, bullion, non-gold jewelleries and/or gemstones to:
- end-consumers;
- micro, small and medium enterprises that are subject to final Income Tax; or
- taxpayers holding an Article 22 Income Tax Exemption Certificate (Surat Keterangan Bebas PPh 22). - Sale of bullion:
- to Bank Indonesia;
- through a physical gold digital market (pasar fisik emas digital); or
- to LJKs engaged in bullion activities
