Gold ETF to Launch on Indonesia Stock Exchange on 10 August 2026

The Indonesia Stock Exchange (BEI) is preparing to launch a gold-backed Exchange-Traded Fund (ETF) on 10 August 2026, coinciding with the bourse’s anniversary. BEI Development Director Iding Pardi confirmed the launch date, stating that several securities firms have expressed interest in issuing the product. This instrument is projected to be a significant innovation in the national financial industry, combining the benefits of gold investment with the flexibility of stock exchange transactions. The development of the Gold ETF is part of a broader ETF reform programme aimed at expanding the variety of investment products in the capital market. The product is expected to provide easier, modern, liquid, and affordable access to gold investment for both retail and institutional investors. Amid ongoing global economic uncertainty, gold has regained its appeal as a safe-haven asset, driven by a weakening US dollar and shifting global interest rate policies. BEI data shows gold was one of the highest-growth assets in 2025, with a competitive 10-year average return and a low correlation to stocks and bonds, making it a strong portfolio diversification tool. Indonesia, as a major global gold producer with substantial reserves, is well-positioned to develop a robust bullion ecosystem. The ETF is expected to bridge national gold production with the investment needs of domestic and global investors. With over 27 million capital market investors recorded by the end of May 2026, the market is deemed ready to serve as an efficient and transparent distribution channel for gold investment. The Gold ETF will be structured as a collective investment contract traded on the exchange like stocks, allowing investors to buy units through online trading applications in real time. Unlike physical gold, the ETF eliminates the need for storage and reduces the risk of theft, with the underlying physical gold held securely by licensed custodians. The underlying gold must meet a minimum purity standard of 99.5% according to the London Bullion Market Association (LBMA) or 99.9% under the Indonesian National Standard (SNI). A sharia-compliant version of the ETF has also been approved following a fatwa from the National Sharia Council (DSN-MUI), ensuring the product is free from usury, uncertainty, gambling, and harm. The Financial Services Authority (OJK) has issued Regulation No. 2 of 2026 to govern the new instrument, and the BEI has adjusted its listing and trading rules accordingly. BEI President Director Jeffrey Hendrik noted strong industry interest, with seven investment managers already applying for preliminary listing agreements. A BEI survey also indicated that a gold-based ETF is among the most sought-after products by both individual and institutional investors, though investors are reminded to understand the associated risks.