WGC says physical gold ETFs in Indonesia show growth trend
Jakarta (ANTARA) - The World Gold Council (WGC) assesses that Indonesia is beginning to show a growth trend in interest and demand for physical gold Exchange Traded Funds (ETFs) in line with the latest regulatory developments in the country.
Head of Asia-Pacific (ex-China) and Global Head of Central Banks at WGC, Shaokai Fan, stated that the growth of the digital gold market, the launch of the Bullion Ecosystem Development Roadmap 2026-2031, and the physical gold ETF regulations from the Financial Services Authority (OJK) affirm Indonesia’s commitment to expanding access to gold investment for the wider public.
“The growth of digital platforms and bullion banking initiatives are crucial steps in removing access barriers and strengthening market confidence,” Fan said during a virtual press conference in Jakarta on Wednesday.
In general, the WGC noted that demand for physically backed gold ETFs remained positive in the first quarter of 2026, with a global increase in holdings of 62 tonnes.
This increase, according to Fan, was primarily driven by continued strong performance recorded on Asian exchanges, which added 84 tonnes in this quarter.
“Substantial outflows in March, particularly from ETFs listed in the United States (US), dampened the initially very strong momentum at the start of the year,” he said.
As the country with the largest Muslim population in the world, Fan said Indonesia has long shown interest in financial products that comply with Sharia principles.
He continued that gold, with its tangible nature and lack of interest-based elements, is considered highly aligned with Sharia financial principles.
“Physically backed ETFs, when designed in accordance with Sharia principles, will align with investment preferences in Indonesia. This opens up significant opportunities to reach a substantial base of Muslim investors,” Fan said.
“A developing Sharia-based gold ecosystem will strengthen the appeal of gold as a long-term wealth protection instrument,” he added.