Mandiri Investasi Launches Gold ETF, Targeting Rp1 Trillion in Assets Under Management
Jakarta - The rising price of gold in the market has become a magnet for investors in the commodity. This is what investment management companies are preparing for by introducing Exchange Traded Fund (ETF) gold products, such as Mandiri Manajemen Investasi (MMI).
For this gold product, the company is targeting assets under management (AUM) of Rp1 trillion. The gold ETF to be released will be in the form of a collective investment contract mutual fund with underlying physical gold stored in a bullion financial services institution. The company has partnered with PT Mandiri Sekuritas as a participating dealer for the launch of the Sharia Gold ETF.
Director of Investment at Mandiri Investasi, Ernawan R. Salimsyah, said that this target reflects optimism about the increasing interest of investors in safe-haven instruments amid global uncertainty. “We are targeting assets under management of Rp1 trillion. The opportunity for gold ETFs is increasingly relevant amid geopolitical fragmentation and increasing risks of global fiscal and monetary policies,” he said in Jakarta, yesterday.
Mandiri Investasi estimates that the product can be launched two to three months after the Financial Services Authority (POJK) regulation regarding gold ETFs is officially issued. Currently, the company is monitoring regulatory developments while preparing operational, legal, and product infrastructure readiness.
This optimism is also supported by global trends. Based on data from the World Gold Council, global gold ETF assets reached a record US$559 billion in 2025 with a total of 4,025 tons, up from 3,224 tons in 2024. Ernawan emphasised that gold has a structural function as a hedge against inflation, currency depreciation, and global uncertainty.
In recent years, its correlation with risky assets such as stocks and bonds has been relatively low, making it an effective diversification instrument in a multi-asset strategy. The surge in gold prices, which was followed by a sharp correction, is not seen as reflecting a weakening of fundamentals, but rather a change in expectations for global real interest rates, especially the US central bank’s policy.
As long as global real yields are in a downward or volatile trend, gold is expected to remain attractive. In fact, price corrections can be a healthier entry point. Strategically, gold ETFs are positioned as a complement to money market, fixed income, and equity mutual funds, not a seasonal or speculative product. During periods of rising risk premiums, including when there is pressure on sovereign ratings or stock market volatility, gold often becomes a portfolio balancer. “Gold ETFs are positioned as a long-term diversification tool, not a speculative instrument,” he said.
The Financial Services Authority (POJK) regulation governing assets of Exchange Traded Funds (ETFs) is said to be in the finalisation stage and is awaiting approval for harmonisation at the Ministry of Law and Human Rights (Kemenkum). This regulation is designed to expand the underlying assets of ETF products in Indonesia, while also addressing the needs and input from Investment Managers (MI) who have long desired alternative commodity-based instruments, especially gold.
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