Indonesia to regulate digital gold transaction by the end of the year

 

The regulation was meant to protect consumers, particularly those
who purchase gold online through an installment plan

With the goal to protect consumers from the risks of digital
gold transaction, the Indonesian supervisory body for futures
commodity trade (Bappebti) is preparing a set of regulations that
is due to be finalised by the end of the year.

The scope of the regulations will include digital gold trade,
particularly transactions that are being paid through an
installment scheme. It will oblige sellers to have the gold
products in physical form before offering them to potential
buyers.

“Sellers will need to have the gold in physical form and it
has to acquire Bappebti’s permission. The transaction should also
be finalised through clearing. Everything will be regulated to
ensure consumer protection,” said Bappebti chairman Indrasari
Wisnu Wardhana.

The regulation was prepared in order to protect consumers from
scams and even losses caused by sellers’ misconduct.

Wardhana saw a potentially great demand for digital gold trade;
this is why businesses need to ensure that consumers will be able
to receive their gold products once they have completed
payment.

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“The regulation is currently being processed. Hopefully we
will be able to finalise it this year. By far there has not been
any recorded cases of scams involving gold trading platforms,
particularly on their payment installment scheme. But we are able
to anticipate cases where buyers failed to receive their purchase
upon payment,” Wardhana said.

There is a great opportunity for growth in the digital gold
trading vertical, as can be seen through the launch of fintech
startups offering the service. The trend also includes
Indonesia’s own unicorns Tokopedia and Bukalapak.

Tokopedia is working with Orori for its Tokopedia Emas feature
while Bukalapak is working with PT Sinar Rezeki Handal (Indo Gold)
for its BukaEmas feature. Unlike most conventional gold bar trading
companies, the platforms enable users to pay for the gold bars in
installment.

One gram of gold is being sold for around IDR650,000
(US$44).

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