Starting August 1, new tax rules apply to gold transactions through bullion banks in Indonesia

Indonesia has implemented a major overhaul of its gold taxation policy, targeting bullion bank transactions to enhance efficiency and prevent tax overlaps. The new regulations took effect on August 1, 2025.

New Era of Gold Taxation

Indonesia’s Ministry of Finance officially enacted two new tax regulations — PMK No. 51/2025 and PMK No. 52/2025 — effective August 1, 2025. These regulations are designed to streamline gold trading through bullion banks, currently operated by PT Pegadaian (Persero) and Bank Syariah Indonesia (BSI). The shift follows a surge in gold trading activity, which reached Rp1 trillion by April 2025 after the bullion bank system launched on February 26.

Key Tax Adjustments for Bullion Banks

Under PMK 51/2025, a 0.25% Income Tax (PPh Pasal 22) is now imposed on the purchase of gold bullion by licensed bullion banks, replacing the previous 1.5% rate. The tax is calculated based on the pre-VAT purchase price. The new policy replaces older rules that caused confusion and double taxation, particularly in transactions between financial institutions and individual sellers.

According to Bimo Wijayanto, Director General of Taxation, this revision is part of a broader effort to support Indonesia’s bullion ecosystem and reduce administrative burdens on financial institutions.

“The reduction from 1.5% to 0.25% significantly eases the burden on bullion financial service providers,” Bimo said, as quoted by Antara.

Exceptions and Protections for Small Players

PMK 52/2025 outlines several exemptions from the new tax scheme:

• Transactions under Rp 10 million are exempt from PPh Pasal 22.
• Final tax-paying MSMEs, holders of SKB (tax exemption certificates), and sales to Bank Indonesia or digital physical gold markets are also exempt.
• Retail consumers selling gold bullion are not taxed, preserving fairness and legal clarity for small-scale sellers.

These exemptions ensure that small businesses and retail investors remain protected while ensuring larger transactions contribute fairly.

Equal Treatment for Domestic and Imported Gold

Another significant update is the removal of SKB exemptions for imported gold, meaning imported bullion is now taxed at 0.25%, the same as domestic purchases. This change eliminates the tax imbalance between imported and locally sourced gold, encouraging domestic consumption and strengthening national reserves.

Indonesia, ranked as the 8th largest gold producer globally in 2023, with annual production between 110–160 tons, holds the 6th largest gold reserves. The government sees this policy shift as a vital step in building an integrated and globally competitive gold trading hub.

Regulatory Clarity for a Thriving Ecosyste

The new tax rules also resolve long-standing conflicts from previous overlapping regulations — PMK 48/2023 and PMK 81/2024 — which created inefficiencies. Now, the tax collection role is assigned to bullion banks, providing consistency and predictability in gold-related financial services.

Indonesia’s updated gold taxation policy marks a crucial milestone for its precious metals industry. By reducing tax burdens, closing regulatory loopholes, and leveling the playing field between imports and local trades, the country aims to attract investment and strengthen its gold trading infrastructure. For investors, businesses, and regional partners like Singapore, this presents a more stable and transparent environment for engaging in Indonesia’s growing bullion market.

Sources: VOI.ID (2025) , CNBC Indonesia (2025)

Keywords: Bullion Bank, Gold Tax Indonesia, PPh Pasal 22, Ministry of Finance, PMK 51 2025, PMK 52 2025