JAKARTA: The Indonesia Stock Exchange launches the first exchange-traded funds (ETF) backed by physical gold in a move aimed at strengthening the nation’s bullion ecosystem.
Authorities on Monday have also touted the initiative as a way to improve financial inclusion by bridging the capital market to the bullion ecosystem, while offering investors a new alternative to gain exposure to the precious metal.
Speaking at the launch event, deputy finance minister Juda Agung described the rollout as part of concrete steps toward the authorities’ capital market reform agenda, which includes boosting liquidity and deepening the capital market.
He noted that global appetite for gold ETFs had been increasing.
In 2025, global gold ETF assets under management reached US$559bil, backed by 4,025 tonnes of physical gold.
“Today we have achieved a new milestone. The bullion market will continue to grow, while the capital market will deepen further. Ultimately, the public will have a wider range of alternative gold investments,” he said.
Additionally, Coordinating Economy minister Airlangga Hartanto expressed optimism that Indonesia’s gold assets would continue to rise following the ETF launch, potentially surpassing countries like Singapore and India.
He cited that the domestic gold assets managed by state-owned pawnshop PT Pegadaian had reached 153 tonnes, equivalent to roughly US$20bil.
Financial Services Authority head Friderica Widyasari Dewi added that the ETF rollout was part of the government’s quick-win initiatives and ensured that the product had been designed to comply with syariah principles. — The Jakarta Post/ANN