OJK and SRO Officially Launch Gold ETF Investment Instrument
The Financial Services Authority (OJK), together with Self-Regulatory Organizations (SRO), officially launched a Gold Exchange Traded Fund (ETF) investment instrument, coinciding with the anniversary of the Indonesian Capital Market on Monday.
“We are now ready to launch a Gold ETF in Indonesia. This also marks the expansion of the bullion market as a quick win within the eight action plans, namely integrated market deepening through a Gold ETF,” said OJK Board of Commissioners Chairman Friderica Widyasari Dewi at the launch at the Indonesia Stock Exchange (IDX) building in Jakarta on Monday.
Friderica said that the newly launched Gold ETF investment instrument has obtained sharia principle compliance based on a fatwa from the National Sharia Board (DSN) of the Indonesian Ulema Council (MUI).
“This Gold ETF has obtained sharia principle compliance based on a fatwa from the National Sharia Board (DSN) of the Indonesian Ulema Council (MUI). So this can become a primary alternative (for investment),” said Friderica.
On the same occasion, President Director of PT Kustodian Sentral Efek Indonesia (KSEI) Samsul Hidayat expressed hope that the Gold ETF investment instrument could become a new alternative investment instrument for Indonesian capital market investors.
He also expressed hope that this instrument would become part of strengthening the bullion ecosystem at the national level.
“This product is also part of strengthening the national bullion ecosystem through integration between the capital market and bullion, so that it can support the deepening of the national financial market,” said Samsul.
Samsul explained that the development of the Gold ETF is the result of collaboration between the Financial Services Authority (OJK), SROs, investment managers, custodian banks, dealer participants, bullion banks, and all industry players in the Indonesian capital market.
Through this collaboration, the entire process of forming the Gold ETF takes place within a single ecosystem.
He explained that this ranges from the provision of physical gold as the underlying asset, the recording of Electronic Gold Receipts (EGR) at KSEI as a representation of electronic ownership of gold, to the trading of Gold ETF participation units on the Indonesia Stock Exchange.
“Today’s Gold ETF launch coincides with one year before the golden age of the Indonesian capital market, symbolising hope for a golden era of the Indonesian capital market to contribute towards a Golden Indonesia in 2045,” said Samsul.
A Gold ETF is an investment instrument in the form of a mutual fund traded on the stock exchange with gold as the underlying asset reference.
Through this product, investors can gain exposure to gold price movements without needing to buy or store physical gold directly.