Jakarta, February 25, 2022 - After approval was given by BAPPEBTI, the Ministry of Trade to ICDX, and ICH as organizers and clearing institutions for the implementation of the Digital Gold Physical Market, the off-exchange transactions of the Digital Gold Physical Market at ICDX and ICH have officially started. Together with one of its members, namely PT Indonesia Logam Pratama or better known as Treasury, ICDX and ICH explained further about off-exchange transactions in the Physical Digital Gold Market ecosystem.
The difference between off-exchange and on-exchange transactions is only in the place where the transactions occur. ICDX Vice President of Membership, Yohanes F. Silaen explained, “In off-exchange transactions on the Physical Digital Gold Market, trading is carried out directly on the digital gold trading platform between customers and traders, for example, such as Treasury. Meanwhile, on-exchange transactions occur on the exchange trading platform or are many-to-many. However, these two transactions are the same because they are still regulated and monitored following existing regulations.”
By integrating traders into the Digital Gold Physical Market ecosystem there are many perceived benefits. As one of the digital gold traders who has obtained permission from BAPPEBTI, Head of Partnership Treasury, Anang Samsudin said, “The difference from before getting permission from BAPPEBTI and now is certainly very different. After getting permission, we can explain to Treasury customers and users that we are regulated by BAPPEBTI. So we can provide certainty and grow customer trust to save and start saving digital gold.” This can be seen from the increase in the volume of Treasury transactions in the period February 2022 vs February 2021 which has reached more than 1000%.
In implementing this Digital Gold Physical Market, lCH as a clearing institution guarantees the availability of gold owned by traders and records customer transactions. As explained by the Head of Risk Management, Group Controller and Clearing - ICH, Yudhistira Mercianto, “The role of the clearinghouse is to ensure that gold transactions on digital gold merchant platforms are valid and guarantee the availability of physical gold. Gold that is under the supervision of the clearinghouse must comply with the standards and quality determined by BAPPEBTI, which has a minimum gold content of 99.9%, has a gold certificate that includes a gold serial code, logo, and a certain weight. The next condition is, before being able to trade, this digital gold trader must have at least 10 kilograms of gold to start trading. After the transaction starts, there is a minimum gold availability limit of 25% or around 2.5 kilograms, where traders have to top-up the amount of gold. This supervision is carried out to ensure the adequacy of traders' gold when customers make transactions."
Now customers can check their real gold holdings through the official website of Indonesia Clearing House. After making a transaction on the digital gold application used, the customer can see the amount of gold that has been purchased will increase. This is also one of the benefits for customers in ensuring the availability of physical gold from the transactions made.