Gold ETF Officially Launched, Government Strengthens Bullion Ecosystem and Capital Market

The official gold Exchange Traded Fund (ETF) product was launched on the Indonesian capital market on Monday, August 10. (Photo: Aris Nurjani/VOI)

JAKARTA - The official gold Exchange Traded Fund (ETF) product was launched on the Indonesian capital market on Monday, August 10.

The presence of these instruments is expected to expand access to gold investment as well as deepen the national financial sector.

Coordinating Minister for the Economy Airlangga Hartarto said the launch of the gold ETF provides a wider space for investors to invest in gold commodities and is one of the steps to deepen Indonesia's financial sector.

According to him, the development of new investment products is needed so that the national financial market is stronger and able to compete with other countries.

"Of course, the hope is that with the new ETF product, we will continue to strengthen Indonesia's depth in the financial sector," he said at the Gold ETF Launch and Indonesia Capital Market Anniversary, Monday, August 10.

He also highlighted the large development of gold ETFs in a number of countries, namely, the global gold ETF value reached around 4,047 billion US dollars, with the United States around 526 billion US dollars, South Korea 200 billion US dollars, China 45 billion US dollars, and India around 17.5 billion US dollars.

On the other hand, Airlangga said that Indonesia's gold potential is also quite large.

He gave an example of gold reserves at Pegadaian reaching around 153 tons, with an estimated value of around 20 billion US dollars.

"India can actually race with a fast time. So we will be able to surpass Singapore in a short time," he said.

He also assessed that one of the advantages of gold ETFs is opening up opportunities for insurance companies to invest in gold, which previously had limitations on investing directly in bullion instruments.

Airlangga hopes that the gold ETF will be able to integrate various parties into one ecosystem, ranging from investment managers, custodian banks, bullion banks, dealers, securities companies to exchanges.

In addition to expanding investment options, he added that this connectivity is expected to increase the activity and liquidity of gold trading in the Indonesian capital market.

Airlangga also appreciated the steps taken by the Financial Services Authority (OJK) which designated the Electronic Gold Receipt (EGR) as an effect that can be recorded in the gold ETF portfolio.

According to him, certainty regarding tax treatment, including VAT and Income Tax Article 22 on EGR transactions, is also important to support the development of the instrument.

"Of course, I had already talked to the Minister and the Director General who were related to the treatment of PPN and PPH Article 22 for EDR transactions. That's why the Director General said that I would write it all down.

Airlangga hopes that the gold ETF transaction can develop faster and have a level of activity comparable to other trading instruments on the exchange.

On the same occasion, Deputy Minister of Finance Juda Agung assessed that strengthening the Indonesian capital market needed to continue in the midst of global economic dynamics and challenges.

According to him, the launch of the gold Exchange Traded Fund (ETF) is one of the important steps to expand investment instruments while deepening the national financial market ecosystem.

Juda assessed that the momentum was a new milestone for the development of the Indonesian financial ecosystem.

He said there were three important things that needed attention in the development of the national capital market, namely first, the government encouraged the deepening of the Indonesian capital market.

Juda said the national capital market continued to show positive developments despite facing a number of dynamics in recent times.

Throughout the first semester of 2026, the Indonesian capital market has managed to raise funds of more than IDR 125 trillion, and the number of investors has reached around 28 million.

However, Juda reminded that this development should not make all parties complacent and that the strengthening of the capital market still needs to be carried out through the expansion of the investor base, the addition of investment instrument variations, increased liquidity, and strengthening of governance.

"The government welcomes the reform agenda being carried out by OJK and BI. Starting from strengthening liquidity, increasing transparency, strengthening governance to deepening the market covered in the action plan to accelerate the reform of the integrity of the Indonesian capital market," he said.

The launch of the gold ETF, said Juda, is one of the concrete steps in the agenda to deepen the market because gold-based instruments are increasingly gaining attention in the global investment market.

In 2025, the assets managed by gold ETFs globally were recorded at around 559 billion US dollars, with gold holdings reaching 4,025 tons. According to Juda, this development shows the increasing role of gold ETFs in the global investment ecosystem.

"So what we are doing today is not just adding one product, we are expanding investment options while deepening our financial market so that it can compete with regional and global capital markets. That is the first message," he said.

Second, Juda assessed that gold ETFs need to be part of strengthening the national gold ecosystem because the government has previously started developing bullion business activities or gold banks in Indonesia since 2023.

He added that the launch of the gold ETF was considered an important stage because it connected the bullion ecosystem with the capital market.

Thus, said Juda, gold not only serves as a stored asset, but can also be connected to a variety of investment instruments and broader markets.

"The bullion market will be able to continue to grow, the capital market will also be deeper, in the end people will be able to obtain increasingly diverse investment alternatives that can be used to meet their needs and improve their well-being," he said.

Third, Juda emphasized that innovation in the financial sector must go hand in hand with integrity and trust, so that this is an important concern because gold ETFs have physical gold as their underlying assets.

He said investors must have confidence that gold as a basic asset is actually available, well stored, has a clear valuation, and is managed through accountable and transparent transactions and governance.

"In the end, the market can only work when there is trust. This trust is the most fundamental factor in the financial market. We can build innovative products, we can build increasingly advanced technology and infrastructure, but without trust the market will not grow sustainably," he said.

Therefore, Juda explained that the development of gold ETFs must be followed by strengthening governance, accountability, transparency, investor protection, and adequate supervision.

The government, continued Juda, will continue to strengthen synergies with OJK, BI as regulators and related authorities, capital market players, and all other stakeholders to build a deeper, inclusive, innovative, but still prudent and credible financial market.

"Our next challenge is not only to make the market bigger but to make it deeper and more trusted," he said.