Making Indonesia the world's gold vault
In an era where trust has become the most valuable currency in the global financial system, Indonesia has the opportunity not only to be a gold producer, but also to become the guardian of the world’s gold. Amid rising geopolitical uncertainty, trade wars, economic sanctions, and the fragmentation of the global financial system, gold has once again become a strategic asset sought after by the world’s central banks. Over the past five years, gold purchases by global central banks have reached their highest level since the end of the Bretton Woods system in 1971. According to World Gold Council data, central bank gold purchases worldwide exceeded 1,000 tonnes per year for three consecutive years from 2022 to 2025. This phenomenon indicates that gold is once again viewed as an anchor of stability amidst global economic uncertainty.
What is interesting, however, is not just the increase in gold holdings, but also the shift in storage locations. For decades, most of the world’s central bank gold was stored in New York, London, and Switzerland. Now, a trend of diversifying gold storage locations is emerging. Some countries are choosing to repatriate their gold reserves, while others are seeking alternative storage locations that are closer, secure, neutral, and have high economic stability. It is in this context that Singapore has emerged as an aggressive new player offering international gold storage services.
The question is, why is Indonesia not seizing this opportunity? Indonesia actually possesses capital that is no less strong compared to other countries in the region. As the largest economy in ASEAN and a G20 member, Indonesia has a Gross Domestic Product of more than 1.6 trillion US dollars in 2025. Macroeconomic stability is relatively well maintained, with inflation around 2–3 percent, economic growth above 5 percent, and foreign exchange reserves reaching approximately 145 billion US dollars in May 2026. In terms of natural resources, Indonesia is also one of the world’s largest gold producers, with production ranging from 100 to 130 tonnes per year through major mining operations such as PT Freeport Indonesia and PT Aneka Tambang Tbk.
Ironically, despite being a major gold producer, Indonesia has not yet become a centre for international gold trading or storage. The added value of the gold sector is still largely enjoyed by global financial hubs such as London, Zurich, Dubai, and Singapore. Indonesia sells gold, but does not yet control the gold financial ecosystem. Yet the benefits of becoming an international gold storage centre far exceed mere income from custody fees. A country trusted to store gold belonging to other central banks gains enormous reputational advantages. That trust reflects international recognition of the quality of its institutions, political stability, legal certainty, and the credibility of its central bank.