<![CDATA[Background: This study aims to deconstruct the legal architecture of bullion banking in Indonesia and formulate a robust harmonization model aligned with international protocols. Current literature indicates that global gold market integrity depends on standardized regimes, but Indonesian regulations lack formal integration of international benchmarks, creating a significant research gap in domestic banking law. Methods: This research employs a normative-dogmatic legal method with a functional comparative perspective, analyzing positive legal norms in Indonesia and Singapore. The theoretical component focuses on the civil liability of custodians and the reclassification of gold as a hybrid financial asset through systematic and teleological interpretation of primary and secondary legal materials. Findings: Analysis reveals that jurisdictional dualism between the Financial Services Authority and the Commodity Futures Trading Supervisory Agency generates systemic legal uncertainty and fiscal inefficiency, contributing to capital outflows toward jurisdictions with more stable regulatory environments. Singapore’s standing as a regional gold hub rests on fiscal neutrality for investment-grade gold and the formal adoption of London Bullion Market Association (LBMA) standards within its domestic legislation. The theory of hybrid financial assets indicates that effective bullion banking depends on asset segregation and international quality standardization to support global fungibility and institutional credibility. Conclusion: Formal integration of LBMA protocols into banking law constitutes a necessary precondition for Indonesia to develop a credible regional gold hub, though implementation faces institutional and coordination challenges that merit further study. Novelty/Originality of this article: The originality of this research lies in the reconceptualization of gold as a hybrid financial asset within the contemporary legal-economic framework and the formulation of a specific regulatory blueprint for integrating private transnational standards into domestic banking statutes to resolve persistent jurisdictional collisions.]]>
