IDX Papua hopes gold ETF launch will broaden public investment access

The Indonesia Stock Exchange (IDX) Papua representative office hopes the presence of a gold Exchange-Traded Fund (ETF) can expand public access to gold investment through the capital market while adding to the choice of investment instruments for local investors.

Head of the IDX Papua Representative Office, Kreasna Payokwa, in Jayapura on Wednesday, said the launch of the gold ETF represents a new development in Indonesia’s capital market that can provide an alternative for the public to invest in gold assets through the trading mechanism of the Indonesia Stock Exchange.

“The gold ETF offers a choice for people who want exposure to gold without having to buy and store physical gold directly,” he said.

According to Kreasna, a gold ETF is a mutual fund in the form of a Collective Investment Contract (KIK) whose participation units are traded on the exchange with gold as the underlying asset.

“So investors can buy or sell gold ETF units through securities firms, just like ETF transactions in general,” he said.

He explained that the presence of this instrument is expected to improve the understanding of the people of Papua regarding the various investment options in the capital market, particularly investments with gold as the underlying asset.

“This is one of the investment options that the public can consider according to their risk profile and investment objectives,” said Kreasna.

He added that the IDX hopes the people of Papua can become more familiar with capital market investment instruments and not only regard gold as a physical asset, but also understand the alternative of gold investment through the exchange.

“So members of the public who are interested in investing still need to understand the product characteristics, risks, costs, and align them with their profile and investment objectives before making a transaction,” he said.