JAKARTA - The Financial Services Authority (OJK) is developing a Gold Exchange-Trad Fund (ETF) scheme or ETF Gold to strengthen deepening as well as investment returns from the insurance industry and pension funds.
Deputy Commissioner for Insurance, Guarantee, and OJK Pension Funds, Iwan Pasila, stated that stable and upward gold value can be compensated for the investment returns of an insurance product or pension funds when stock prices are in turmoil.
"Indeed, if you look at the gold investment, it's like he's compensated for fluctuations in stocks. So, if the shares go up, he's really going down a bit, but as soon as the shares go down, he's going to balance that way," said Iwan Pasila in Jakarta, quoted by Antara, Thursday, May 22.
He said, in order to face risks and fulfill long-term obligations, currently it is not enough for insurance and pension funds to only invest in stock and bond instruments.
This prompted the emergence of the idea of developing a safe gold investment product for the insurance industry and pension funds, which in fact has a large amount of managed funds.
Iwan said that currently the development of ETF Gold is being discussed by the OJK together with related parties, including the Indonesia Stock Exchange (IDX), especially regarding the readiness of instruments, ecosystems, regulations, and other supporting aspects.
SEE ALSO:
He said that the OJK had allowed insurance and pension funds to invest their managed funds in gold according to the Financial Services Authority Regulation (POJK) Number 5 of 2023 concerning the Second Amendment to POJK Number 71/ POJK.05/2016 concerning Financial Health of Insurance Companies and Insurance Companies.
However, he admits that there are limitations if insurance players and pension funds invest in pure gold physically due to lack of liquidity.
"Right now, there have been many discussions about how to invest in gold, but it is impossible to invest in gold in physical form. So, the existence of this ETF has become very good and we are currently reviewing it together with friends in the capital market and also the stock exchange," said Iwan Pasila.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
