Pegadaian and KSEI Strengthen Gold Ecosystem Through Gold ETF Investment

JAKARTA - PT Pegadaian (Pegadaian) and PT Kustodian Sentral Efek Indonesia (KSEI) have entered into a cooperation through the signing of a Cooperation Agreement (PKS) so that PT Pegadaian officially joined as a KSEI Account Holder. This agreement also marks a new milestone in the national economy related to the implementation of Electronic Gold Receipt (EGR) and Gold Exchange Traded Fund (ETF) in the second semester of 2026 in the Indonesian capital market.

The signing ceremony was carried out by KSEI President Director Samsul Hidayat and Director of Marketing, Sales, and Product Development of PT Pegadaian Selfie Dewiyanti at the Main Hall of the Indonesia Stock Exchange on Friday, June 12.

The signing of this strategic cooperation agreement was also attended and witnessed by key stakeholders in the financial sector, namely the Head of the Institutional Licensing and Professional Sector of the Financial Services Authority (OJK) Ridwan, the Board of Directors of the Indonesia Stock Exchange (IDX), the Indonesian Securities Clearing House (KPEI), and KSEI, as well as representatives of Indonesian capital market associations.

On April 27, 2026, OJK has approved PT Pegadaian's application to become a KSEI Account Holder. This approval is a formal foundation that opens the way for an important milestone in the Indonesian capital market, namely the formation of a storage and settlement infrastructure for EGR securities which were first introduced in Indonesia as the underlying securities of the Gold ETF investment product. After joining as a KSEI Account Holder, PT Pegadaian obtained the authority to directly record EGR into the KSEI system, namely The Central Depository and Book-Entry Settlement System (C-BEST).

Gold EGR is proof of ownership of digital gold that is guaranteed by physical gold and recorded electronically in the KSEI system based on physical gold stored and administered by PT Pegadaian which acts as an institution for storing gold that has obtained permission as a bullion business operator from the OJK. The transformation of EGR into tradable securities in the capital market is a strategic step in building a modern and integrated gold investment ecosystem.

Director of Marketing, Sales and Product Development of PT Pegadaian Selfie Dewiyanti said this collaborative step is a real response to support the strengthening of the Bullion Bank ecosystem in Indonesia through the latest investment innovation in the form of Gold ETFs. Although this gold-based financial instrument is relatively new in the country, similar schemes have developed rapidly and proven to be advanced on global exchanges, one of which is in the United States which has recorded itself as the largest holder of Gold ETF shares in the world.

With the presence of Gold ETFs in the domestic market, investors now have an alternative instrument that allows them to invest in gold easily, safely, and directly through trading mechanisms on the stock exchange just like trading stocks.

"This synergy between Pegadaian and KSEI is a strategic step that not only strengthens the governance of the security of investment asset records, but also prepares a solid infrastructure for the Indonesian bullion ecosystem to merge into the global capital market. We are fully committed to optimizing our role as a trusted gold provider and keeper, providing full transparency to investors that every gram of digital gold they transact is fully supported by real physical gold in our vaults," said Selfie.

On the same occasion, KSEI President Director Samsul Hidayat said that KSEI provides full support for the development of the Indonesian capital market, including for the development of infrastructure and strategic collaboration with various parties.

"The inclusion of Pegadaian as a KSEI Account Holder is one of the relevant steps to welcome the development of EGR and Gold ETFs as part of efforts to expand the choice of Indonesian capital market investment products. This innovative product is expected to be an investment alternative that connects the characteristics of gold as an asset that has been widely known by the public with a transparent investment mechanism and well-administered through the infrastructure that KSEI has," said Samsul.

The joining of PT Pegadaian as a KSEI Account Holder in 2026 will increase the total number of KSEI Account Holders to 124. This addition has a positive impact on deepening the capital market and strengthening the national financial ecosystem, including the potential for an increase in total assets under management and liquidity in the Indonesian capital market. In line with this growth, KSEI continues to develop its digital system capacity to ensure a reliable and adaptive infrastructure to accommodate the dynamics of the Indonesian capital market in the future.

As a KSEI and Bullion Bank Account Holder, PT Pegadaian also has the opportunity to optimize its role in the Indonesian capital market through the activity of borrowing and lending securities, so that it not only supports the development of Gold ETFs, but also increases liquidity, transaction efficiency, and deepens the Indonesian capital market.

Technically operational, this strategic partnership includes two core agreements as an effort to ensure the security of investor assets. The first agreement is the merger of Pegadaian as a KSEI Account Holder based on the KSEI Board of Directors Decree Number KEP-0014/DIR/KSEI/0224. Through this scheme, Pegadaian has the authority to directly record EGR into the KSEI system, thereby accelerating the process of book transfer and reconciliation between electronic records and the existence of physical gold on a regular basis.

This mechanism is also a risk mitigation to ensure that each creation of EGR has a precise physical asset base and avoids potential mismatches or mismatches of recording. Meanwhile, the second agreement stipulates the role of Pegadaian in the management and storage of physical gold by referring to the regulation of POJK Number 2 of 2026 Article 7 point d. The regulation regulates the appointment of bullion entities by KSEI to carry out custody, storage, guarding, and verification of the legality of gold as the underlying assets of ETFs.

As a trusted provider and storage place, Pegadaian has the task of registering EGR gold to the KSEI system for the smooth issuance of the Gold EGR ETF. The entire process is designed so that investor asset ownership can be managed in one integrated, efficient, legal, and secure governance ecosystem.

By becoming a KSEI Account Holder, Pegadaian also becomes an enabler of the Gold ETF product feature which can be used as collateral through the Pegadaian Securities Pledge product which has served the retail and institutional investor segments since 2019. Pegadaian Securities Pledge products are financing products based on the law of Pledge with collateral of shares and bonds traded on the IDX, so that people can still be able to optimize momentum through fulfilling their short-term needs with Gold ETFs as well as shares and bonds owned as collateral for Pegadaian Securities Pledge products.

The implementation of EGR and the plan to implement the Gold ETF in the Indonesian capital market is strengthened by the brilliant performance of gold investment, which is known as the asset with the best performance throughout 2025, which recorded a significant growth of 56.7 percent in rupiah terms. In the midst of high global uncertainty, gold continues to strengthen its role as the main preferred hedging asset (safe haven) for investors.

As one of the main producing countries with the largest gold reserves in the world, Indonesia ranks eighth in global producers with a volume of 132.5 tons and ranks sixth in the world for gold resources reaching 2,600 tons based on OJK data. This country has an extraordinary opportunity to channel the potential of domestic gold directly to retail and institutional investors through the capital market ecosystem.

This massive interest is also validated by an internal survey of the IDX on 515 individual investors and 67 institutional investors who place gold-based ETFs as the most attractive product variation to be immediately issued in the Indonesian capital market. The potential of Gold ETFs as an alternative to investing in the capital market is getting bigger considering the increase in the number of capital market investors from 7.49 million in 2021 to 20.35 million by the end of 2025.

As of June 8, 2026, the number of investors has increased again and has reached 28.19 million, reflecting the increasing participation of the public in the national capital market.

In order to provide in-depth understanding for the public, this series of events is also equipped with an interactive talkshow session which presents expert panelists from representatives of Pegadaian, banking analysts, and BEI, with KSEI acting as the event moderator to thoroughly explore the potential for a bright future of Gold ETF in the domestic market. Through this ongoing collaboration, Pegadaian and KSEI agreed to continue exploring various other potential strategic collaborations in the future to strengthen the long-term synergy of the two national financial institutions.