Gold ETF Strengthens National Bullion Ecosystem

The Indonesia Stock Exchange has officially launched a gold Exchange-Traded Fund (ETF), a move expected to provide a new investment alternative for capital market investors while strengthening the national bullion ecosystem. Samsul Hidayat, President Director of PT Kustodian Sentral Efek Indonesia (KSEI), stated that the product integrates the capital market with bullion business activities, covering the provision of physical gold as the underlying asset, the recording of Electronic Gold Receipts (EGR) at KSEI, and the trading of ETF units on the exchange. The development is a collaboration between the Financial Services Authority (OJK), Self-Regulatory Organizations (SROs), investment managers, custodian banks, participating dealers, and bullion banks.

Deputy Minister of Finance Juda Agung described the launch as a new milestone in the development of the national financial ecosystem and part of the agenda to accelerate capital market reform and integrity. He noted that the global gold ETF market managed assets worth USD 559 billion in 2025, holding approximately 4,025 tonnes of gold, demonstrating the instrument’s potential to deepen Indonesia’s financial market and enhance its regional and global competitiveness. Juda stressed that the physical gold underlying the ETF must provide certainty and trust, with accountable and transparent governance, storage, and valuation processes.

Friderica Widyasari Dewi, Chair of the OJK Board of Commissioners, revealed that the development of a gold ETF had been a goal for 10 to 15 years but was previously not feasible. She stated that the launch is part of the expansion of the bullion market and a continuation of the ecosystem development that began with bullion bank activities. The launch, coinciding with the 49th anniversary of the Indonesian capital market, symbolises the hope for a golden era leading towards the Indonesia Emas 2045 vision.