Pegadaian Officially Becomes the Sole Bullion Bank Underlying Provider for Gold ETFs in Indonesia

Jakarta - Entering a new chapter in the development of the gold investment ecosystem in Indonesia, a Gold Exchange Traded Fund (ETF) was officially launched, coinciding with the 49th anniversary of the reactivation of the Indonesian Capital Market on 10 August 2026. The launch was marked by the Gold ETF being officially listed and traded on the Indonesia Stock Exchange (BEI) on Monday (10/8).

The launch was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Chair of the Board of Commissioners of the Financial Services Authority (OJK) Friderica Widyasari Dewi along with other OJK Board members, Vice Minister of Finance Juda Agung, Chief Investment Officer of Danantara Indonesia Pandu Sjahrir, President Director of PT Pegadaian Damar Latri Setiawan and the Board of Directors, as well as other stakeholders.

The presence of the Gold ETF is a strategic step in expanding public access to gold investment instruments through the capital market, while simultaneously strengthening synergy among players in the bullion ecosystem. The Gold ETF itself is a mutual fund investment instrument traded on the Indonesia Stock Exchange with underlying assets in the form of physical gold.

Within this ecosystem, Pegadaian acts as the underlying asset provider for the Gold ETF through Electronic Gold Receipts (EGR). This instrument is issued by Pegadaian based on physical gold owned or managed by the company and can be traded back to Pegadaian in accordance with applicable regulations. The EGR ownership unit represents gold digitally, with 1 gram of gold equivalent to 1,000 EGR, while the ETF basket unit can be determined according to the provisions of each Investment Manager.

“The presence of the Gold ETF is an important milestone in the development of the gold ecosystem in Indonesia. Collaboration between bullion industry players and the capital market opens up wider opportunities for the public to access gold investment through exchange-traded instruments. In this ecosystem, Pegadaian serves as the sole Bullion Bank that is the underlying provider for the Gold ETF in Indonesia, not as the issuer of the Gold ETF product,” said President Director of PT Pegadaian Damar Latri Setiawan.

The development of the Gold ETF is the result of collaboration among various stakeholders. It began with the initiative to establish a Gold ETF in 2024 through the Indonesia Stock Exchange together with the Financial Services Authority. Subsequently, in 2025, Pegadaian and KSEI signed a Memorandum of Understanding (MoU) on the Operational Preparation of Gold ETF Products in Indonesia, as well as an MoU on the Exploration of Gold ETF Products with capital market players.

Pegadaian was entrusted as the underlying provider for the Gold ETF in Indonesia due to its infrastructure and regulatory readiness, supported by a bullion ecosystem that has been operating for hundreds of years, with a cooperation network of nationally certified SNI 99.99 percent gold producers. Furthermore, Pegadaian possesses an international-standard vault, where the availability of stored physical gold corresponds to the data recorded by EGR and KSEI, with periodic reconciliation in accordance with POJK 17/2024 and POJK 2/2026, as well as internal and external audits.

Meanwhile, Vice Minister of Finance Juda Agung highlighted the importance of the Gold ETF as an effort to expand investment choices and deepen the financial market so that it can compete not only in the regional but also the global capital market. “In the global capital market, interest in gold-based ETFs has indeed increased. In 2025, global Gold ETF assets under management reached USD 559 billion with gold holdings of 4,025 tonnes. This reflects the growing importance of this instrument within the global investment ecosystem. So, what we are doing today is not merely adding a product, but expanding investment choices while deepening our financial market so that we can compete in the regional and global capital markets,” Juda stated.

Chair of the Board of Commissioners of the Financial Services Authority Friderica Widyasari Dewi also conveyed that the Gold ETF in Indonesia has been prepared very thoroughly and is even compliant with Sharia principles. “This Gold ETF has obtained Sharia compliance, based on a Fatwa from the National Sharia Board of the Indonesian Ulema Council (DSN-MUI). So, this can be an investment alternative, especially for women,” Friderica remarked.

In line with the development of the ETF and EGR in 2025, the National Sharia Board of the Indonesian Ulema Council (DSN-MUI) issued Fatwa Number 163/DSN-MUI/VII/2025 concerning Sharia Gold Exchange Traded Funds (ETF), which serves as one of the foundations for developing Sharia-based Gold ETF products. This development stage was further strengthened in 2026 with the issuance of Financial Services Authority Regulation (POJK) Number 2 of 2026 concerning Mutual Funds in the Form of Collective Investment Contracts whose Participation Units are Traded on the Stock Exchange with underlying assets in the form of gold.

The subsequent implementation of the Gold ETF involves various parties, including Investment Managers, Custodian Banks, Participating Dealers, KSEI, and other capital market players. This collaboration includes, among other things, the registration of EGRs and the preparation and execution of the Gold ETF launch on the Indonesia Stock Exchange.

Coordinating Minister for Economic Affairs Airlangga Hartarto expressed his optimism regarding the Gold ETF product, hoping it would become a driving force enabling Indonesia to compete in the global market through the gold ecosystem. “It is hoped that with the new Gold ETF product, we will continue to strengthen the depth of Indonesia’s financial sector. I am also very pleased, in line with Mr. Juda’s earlier speech about global gold assets under management. The United States has USD 200 billion, China USD 45 billion, India USD 17.5 billion. Pegadaian alone holds 153 tonnes of gold, or USD 20 billion. This means that in the near future, we can compete with other countries,” Airlangga stated.