OJK Highlights Challenges in Bullion Business Licensing for Financial Institutions

Current Status of Bullion Business Licenses

The Financial Services Authority (OJK) has revealed that currently, only PT Pegadaian and Bank Syariah Indonesia have successfully obtained bullion business licenses from the regulatory body. As stated by OJK Executive Head Agusman, no additional financial institutions have submitted applications for this specific business license.

Challenges in Obtaining Bullion Business Licenses

Agusman explained that several factors contribute to the hesitance of other financial institutions to apply for bullion business licenses. Primary challenges include the time required to study the market and prepare necessary infrastructure. Furthermore, institutions must comply with various regulatory requirements as stipulated by OJK.

Regulatory Framework for Bullion Businesses

The bullion business operations are governed by OJK Regulation Number 17/2024, which outlines the specific guidelines and requirements for financial institutions wishing to engage in this business. Despite the current low uptake, Agusman emphasized that opportunities remain open for other institutions to apply for bullion business licenses, provided they meet the necessary criteria and regulatory standards.

Implications for Financial Institutions

The current landscape indicates a cautious approach by financial institutions towards entering the bullion business. While PT Pegadaian and Bank Syariah Indonesia have taken the lead, other institutions are likely monitoring the developments and assessing their own readiness to comply with OJK's stringent requirements.