Jakarta, June 6 -- In February this year, Indonesia, one of the world's leading gold producers, launched its first bullion banks to strengthen the gold downstream sector and maximize economic benefits from gold processing, trading, and financing.

The goal is to help retain more value generated from gold transactions within the country.

According to President Prabowo Subianto, the bullion banks could help the state save foreign exchange by allowing the entire gold supply chain to remain onshore. This is important, considering that much of the gold mined in Indonesia ends up being held overseas, he said.

"We hope this (bullion banking system) will increase our gross domestic production. If I am not mistaken, it can add Rp245 trillion (to...