Gold ETF Officially Launched, Pegadaian Becomes Physical Gold Provider for IDX Product

The launch of the Gold Exchange Traded Fund (ETF) on the Indonesia Stock Exchange (IDX) on Monday, 10 August 2026, marks a new chapter in the development of gold investment in Indonesia. In this product, PT Pegadaian (Persero) plays a special role as the sole bullion bank acting as the underlying asset provider for the Gold ETF in Indonesia.

The Gold ETF was officially listed and began trading on the IDX, coinciding with the 49th anniversary of the reactivation of the Indonesian Capital Market. The launch was attended by government officials, regulators, capital market industry players, and Pegadaian executives.

Pegadaian President Director Damar Latri Setiawan emphasised that the company’s position in the Gold ETF ecosystem is not as the product issuer, but rather as the provider of the underlying assets that support the instrument. “In this ecosystem, Pegadaian acts as the sole Bullion Bank that is the underlying provider for the Gold ETF in Indonesia, not as the issuer of the ETF product,” said Damar.

Pegadaian provides the underlying asset for the ETF through an Electronic Gold Receipt (EGR). The EGR is an electronic proof of gold ownership that represents physical gold. This instrument is issued by Pegadaian based on physical gold that is owned or managed by the company. Ownership of the EGR can also be traded back to Pegadaian according to applicable price regulations. In this system, 1 gram of gold is equivalent to 1,000 EGR, while the ETF basket unit is determined according to the provisions of each Investment Manager. Through this mechanism, gold ownership as the ETF’s underlying asset can be recorded electronically and connected to the capital market infrastructure.

Pegadaian was selected as the underlying provider due to its infrastructure and regulatory readiness, as well as its developed bullion ecosystem. The company stated that this ecosystem is supported by a network of cooperation with national gold producers certified to SNI 99.99 percent purity. The company also possesses an international-standard gold storage facility, or vault. The availability of stored physical gold is reconciled with data recorded in the EGR and the Indonesia Central Securities Depository (KSEI). This process is strengthened through periodic reconciliation, the application of regulatory provisions, and internal and external audits.