Gold ETF Already in Line with Sharia Principles DSN-MUI as a New Investment Alternative

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

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

This investment instrument has obtained compliance with Sharia principles based on the fatwa of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI), thus providing a new alternative for people who want to invest in gold through the capital market.

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Friderica Widyasari Dewi said the launch of the gold ETF was the result of a development process that had been going on for more than a decade.

According to the woman, who is familiarly called Kiki, explained that the gold ETF had not been realized due to a number of regulatory limitations, however, changes in legislation make Indonesia now considered ready to develop the instrument.

"At that time it was not possible at this time with changes in laws and others, at this time we are ready to launch gold ETFs in Indonesia, this also marks the expansion of the bullion market as a quick win in the 8 action plans, namely deepening the market in an integrated manner through Gold ETFs," he said. at the launch of the Gold ETF and the anniversary of the Indonesian Capital Market, Monday, August 10.

He said the launch of the gold ETF was part of an effort to expand the bullion market while deepening the capital market in an integrated manner, and was one of the steps in implementing the agenda for the development of the bullion market.

Kiki added that gold ETFs have obtained Sharia principle compliance through the DSN-MUI fatwa, so that the product can now become an investment alternative for the public, including investors who want to obtain exposure to gold through capital market instruments.

"The good news is that this gold ETF has obtained Sharia principle compliance based on the fatwa of the National Sharia Council of the Indonesian Ulema Council. So this can be a main alternative, especially for mothers because mothers like gold," he said.

Apart from the sharia aspect, gold ETFs offer convenience because the participation units can be traded through the Indonesia Stock Exchange (IDX), and the product also has a level of liquidity and can be one of the investment options that are safe havens when the market faces volatility.

Kiki explained that the existence of gold ETFs is expected to support market expansion, increase investment inclusion, and provide an alternative for the public to diversify their portfolios.

"This is one of the investments that is a safe haven, yes, a protector when it may happen, then volatility and so on," he said.

On the other hand, Kiki emphasized the importance of strengthening integrity and trust as the number of investors in the Indonesian capital market continues to increase.

Until August 2026, the number of Single Investor Identification (SID) was recorded at 30.27 million investors.

According to Kiki, this growth not only shows an increase in the number of investors, but also reflects the increasing public confidence in the Indonesian capital market.

"This is interesting because in 8 months, not even the end of August, there has been a growth of almost 50 percent of new SID in the Mondal Indonesia Market. This figure reflects not just numbers, not just the growth of the number of investors, but the meaning behind it that there is trust, there is confidence, there is hope for the Indonesian people towards the Indonesian capital market," he said.

Meanwhile, the President Director of the Indonesian Central Securities Depository (KSEI) Samsul Hidayat explained that the gold ETF was developed in an integrated ecosystem, ranging from the provision of physical gold to the trading of ETF units on the exchange.

He said the process includes the provision of physical gold as the underlying asset, the recording of Electronic Gold Receipt (EGR) at KSEI as a representation of electronic gold ownership, to the trading of gold ETF participation units on the IDX.

"Starting from the provision of physical gold as a basic asset, the recording of Electronic Gold Receipt or EGR at KSEI as a representation of electronic ownership of gold, to trading gold ETF participation units on the Indonesia Stock Exchange," he explained.

There are five investment managers who have issued gold ETF products, namely Trimegah Asset Management, BRI Investment Management, Mandiri Investment Management, Syailendra Capital, and Indo Premier Investment Management.