Jakarta. State-run pawnbroker Pegadaian reported that its gold deposits had reached almost 1 ton as the enthusiasm to buy the yellow precious metal soared high in Indonesia.

Gold is currently rising in popularity as the precious metal remains stable amid global uncertainties. People have also been flocking to Pegadaian's Galeri 24 since the Eid al Fitr break. Aside from gold purchases, Pegadaian's gold deposits are also popular among customers. In less than 6 months, Pegadaian recorded almost 1 ton of gold deposits.

"This shows that our gold deposits have become an alternative investment for people. We do not only gain from the price of gold that keeps on rising, but they will also get a return from the deposit," Pegadaian's president director Damar Latri Setiawan was quoted as saying in a press statement.

Pegadaian becomes the first company to launch gold banking services in Indonesia. It also offers gold deposits as a more modern and practical investment option. People can also invest in gold deposits easily simply by accessing the Pegadaian Digital app.

According to Damar, gold deposits come with an array of advantages. Not only it is insured, but the deposit tenor is flexible with returns. To be able to access gold deposits, customers must have a Pegadaian Gold Savings account and upgrade to a premium account on the Pegadaian Digital app version 6.1.0. They must then make a transaction of at least 5 grams.

Pegadaian runs Indonesia's first gold bullion bank. These bullion services aim to support the country's mineral processing and optimize domestic gold management. It is also part of Indonesia's strategy to reduce dependence on storing gold offshore. The bullion banking services are expected to add Rp 245 trillion (around $14.6 billion) to Indonesia's economy and create 1.8 million jobs.

Pegadaian was the first to secure a permit from the Financial Services Authority or OJK to carry out bullion businesses in late 2024. This made Pegadaian the first gold bank in the country. OJK has given Pegadaian its green light to conduct bullion business activities, including gold deposits, gold working capital loans, corporate gold deposit services, and gold trading.