JAKARTA, Feb. 26 (Xinhua) -- Indonesian President Prabowo Subianto launched the country's first-ever gold bank service on Wednesday, aiming to strengthen the national gold industry ecosystem and support the downstream industry.

The establishment of the gold bank service aims to strengthen the gold trading ecosystem, enhance downstream activities, and expand financing access for the national gold industry.

According to banking regulations, financial service institutions can engage in the bullion business only if their primary activities involve credit distribution or financing.

In the future, general banks will be allowed to engage in the bullion business if they have a core capital of at least 14 trillion rupiahs. Commercial banks that meet the core capital requirements will also be permitted to conduct bullion business through Islamic business units.

The gold bank service is expected to contribute significantly to the economy, with projections indicating an increase in gross domestic product of up to 245 trillion rupiahs, investment growth of 47.4 trillion rupiahs, and an increase in money circulation by 156 trillion rupiahs.

Indonesia currently holds gold reserves of 2,600 tons, making it the sixth-largest in the world. (1 U.S. dollar equals about 16,347 rupiahs) Enditem

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