Kinesis and Indonesian Government Postal Service (POS Indonesia), the world's third largest Post Office, to launch the first and only purpose-built bullion vault in Indonesia

London 28th June 2019: Kinesis has been closely following the development of new regulation in Indonesia as they hope to assist in the implementation of a monetary system to assist the unbanked and underbanked population in Indonesia.

A key component of the new gold trading regulation in Indonesia (February 2019), with inputs by Kinesis, states that any online or exchange-based physical gold trading product must be deliverable and physically located in an Indonesian vaulting facility. Currently there is no purpose-built bullion vaulting facility in Indonesia, despite being in a major gold demand and trading centre with over 160 mt/yr gold production, 75+ mt/yr domestic demand and a 100 mt/yr capacity LBMA-approved gold refinery.

Kinesis has partnered with Offenes Zolllager in Liechtenstein AG (OZL) and the Indonesian government to construct a high security, best-in-class vault facility to house the physical metal used in the Kinesis Monetary System and the Allocated Bullion Exchange (ABX) / Jakarta Futures Exchange (JFX) shariah compliant, spot physical bullion exchange. This will serve as the central bullion hub in Indonesia for both conventional and shariah-compliant bullion.

In accordance with the new regulation, Kinesis, OZL and the Indonesian Government Postal Service (PT POS) are planning to develop, build and operate an international standard vaulting facility in Jakarta.

Additional stakeholders in the project include, Jakarta Futures Exchange (JFX), government clearinghouse Kliring Berjangka Indonesia (KBI) and religious organisation – Nahdlatul Ulama (NU) who have 100+ million members.

Kinesis has produced preliminary vault project plans, including design and cost elements for the establishment of a vaulting project in Indonesia. This comprises of a timeline from pre-construction phase through to the operational phase.

POS Indonesia have indicated they will facilitate and contribute significant resources and support for the project, including the contribution of land; licenses for Free Zone/Bonded Warehouse designation, and duty-free imports; permits for expedited building, construction and utilities; as well as significant post-launch marketing and logistical support.

PT POS Indonesia is the state-owned postal service in Indonesia and third largest postal service in the world, in terms of number of offices and sales outlets (over 58,000). In addition to delivering postal services, they are also the largest non-bank financial institution in Indonesia, providing payments, cross border remittances, micro-loans and other financial services.

Eric Maine, Chief Strategy Officer of Kinesis, indicates “The vault initiative, being the first and only bullion vault facility in Indonesia, and with the support and active participation by large government, commercial and member organizations, not only creates a first mover advantage in the precious metal space, but also creates a huge barrier to entry to any potential future competitors. Kinesis, as one of the majority shareholders in the vault, will benefit through a new revenue line via storage fees as well as multiple direct access points to the Kinesis Platform and services”

Gilarsi Setijono, President Director of PT POS Indonesia comments “Gold is a very important investment and savings asset class in Indonesia across all segments of society and the first and only purpose-built vault facility will give significant access and confidence to the market. This vault project together with Kinesis, as well as other government-related gold savings initiatives, will be of long-term benefit to Indonesia and Indonesian citizens.”