Digital Gold Investment Expands Public Access
Digital gold investment is considered capable of expanding public access to precious metal instruments amid increasingly high gold prices. Through financial market instruments, the public has an alternative to invest gradually without having to wait until they have sufficient funds to buy physical gold in a certain size.
In this context, PT Indo Premier Investment Management (IPIM) is collaborating with PT Indo Premier Sekuritas (IPOT) to present the Power Fund Series (PFS) through the IPOT Fund platform. One of its products is the Sharia Mutual Fund Premier ETF Gold Sharia Indonesia (XGLD), a gold ETF listed on the Indonesia Stock Exchange.
The product allows investors to obtain exposure to gold through capital market instruments without having to buy physical gold directly in large quantities.
“Anyone can now start saving gold starting from just 0.1 milligrams or one participation unit,” said Director of PT Indo Premier Investment Management (IPIM), Noviono Darmosusilo, in an official statement.
According to him, the XGLD ticker code was chosen because it has an association with the word gold and follows the naming of gold exchange-traded funds (ETFs) known in the global market. The naming is expected to make it easier for investors to recognise the product.
As the Sharia Mutual Fund Premier ETF Gold Sharia Indonesia, XGLD uses a mechanism that refers to sharia principles. Fund management uses a Wakalah bil al-Ujrah contract, while physical gold transactions use Bai’ al-Muthlaq. The product is also under the supervision of the Sharia Supervisory Board and refers to DSN-MUI Fatwa No. 163/DSN-MUI/VIII/2025.
In addition, there are five characteristics of the PFS XGLD investment. First, the XGLD portfolio is based on pure gold assets with a maximum cash composition of 5%. Because transactions are carried out through capital market instruments, investors do not need to store gold physically or manage storage needs and the buyback process directly.
Although traded digitally following prices on the exchange, XGLD still has an underlying in the form of physical gold. Its portfolio is linked to pure gold that has international LBMA (London Bullion Market Association) or SNI certification.
Second, XGLD can be transacted through PFS on IPOT Fund with a value starting from 0.1 milligrams or one participation unit. This mechanism allows investors to buy gold exposure gradually without having to wait for funds to accumulate to buy physical gold in a size of one gram or more.
Third, XGLD trading is carried out during stock exchange trading hours so that investors can monitor transactions and changes in portfolio value through the trading system. This instrument provides exposure to gold with a clear underlying and a T+1 settlement process.
Fourth, in terms of tax provisions, XGLD is a mutual fund in the form of an ETF Collective Investment Contract (KIK). Profits in the form of capital gains and dividends from the mutual fund are categorised as not being objects of Income Tax (PPh).
In annual tax reporting, ownership of XGLD participation units is recorded in the Assets List section, while profits are listed in the Non-Taxable Income section in the Annual Tax Return.
Fifth, XGLD is managed within the Indo Premier ecosystem, which has been involved in the development of the ETF industry in Indonesia since 2007. PT Indo Premier Investment Management (IPIM) acts as the investment manager, while PT Indo Premier Sekuritas is the participating dealer in XGLD trading. IPOT serves as the digital platform providing access for retail investors.