BEI to Launch Gold ETF in Partnership with Bank Syariah Indonesia (BRIS) and Pegadaian

Sinar Harapan - The Indonesia Stock Exchange (BEI) is preparing a new step that could broaden the investment options available to the public.

The gold exchange-traded fund (ETF) is targeted for imminent launch and is expected to become a new instrument capable of linking gold investment with the modern capital market.

Ignatius Denny Wicaksono, Head of Division 2, Business Development at the Indonesia Stock Exchange, said industry interest in gold ETFs is considerable.

Currently, nine investment managers are preparing to issue the product. Two have already submitted registration documents, while seven others are still undergoing the legal review of their prospectuses.

Challenges of Integrating Physical Gold with the Capital Market

Although its prospects are promising, the development of a gold ETF is not without challenges.

Beyond infrastructure, taxation issues are also being discussed intensively with the Directorate General of Taxes of the Ministry of Finance.

At present, capital market instruments such as shares and bonds already have a final income tax regime with a flat rate. However, for ETFs with underlying gold, such a regulation is not yet available.