Gold ETF: A New Investment Bridge, Expanding the Market, and Strengthening the Financial Industry
JAKARTA, KOMPAS.com - Gold Exchange Traded Funds (ETFs) are expected to increase the number of retail investors and add alternative gold investment instruments for the public.
OJK’s Deputy Commissioner for Licensing and Supervision of Capital Market Investment Management and Securities Institutions, Eddy Manindo, stated that the issuance of the Financial Services Authority (OJK) regulation on gold ETFs serves as a bridge to strengthen the national capital market structure while building a bullion ecosystem in Indonesia.
He explained that this product must be fully supported by physical gold with the principle of allocated gold through a one-to-one ratio.
“Going forward, we view gold ETFs not only as an alternative instrument but as a long-term investment vehicle for both retail and institutional investors,” he said in an official statement on Monday (20/4/2026).
For context, gold ETFs are capital market products that typically hold physical gold (physical-backed) or futures contracts, with units traded on the exchange like ordinary shares.
He added that gold ETFs can drive increased accessibility to the financial market.
This can be achieved provided there is support through comprehensive governance and compliance in investment, operational, and risk management aspects. “To maintain investor confidence,” he stated.
Chair of the Indonesia Investment Managers Association (AMII), Lolita Liliana, conveyed that the issuance of the gold ETF regulation is an important milestone for the development of investment instruments in Indonesia.
Gold ETFs address the urgency of increasing access to financial instruments and efforts to catch up with neighbouring countries.
She hopes that the presence of gold ETFs will provide an efficient inflation hedging investment alternative for institutional fund managers, while also strengthening the national gold reserves.
“This instrument provides broader access to gold investments for the public in a safer form, as investors do not need to store physical gold independently,” she said.
“This encompasses the roles of regulators, exchanges, underlying asset providers, dealer participants, distributors, and investment managers as a collective industry effort,” she added.
From an industry perspective, gold ETFs are seen to have significant strategic value, namely expanding alternative asset diversification options for domestic investors and serving as a gateway product to attract new investors to the capital market. Gold ETFs are also believed to catalyse the broader development of the Indonesian ETF market and strengthen the position of Indonesia’s investment management industry at the regional level.