Indonesia Launches Gold ETF to Expand Investment Opportunities

Indonesia has officially launched its first Gold Exchange Traded Fund (ETF) on August 10, 2026, coinciding with the 49th anniversary of the Indonesian capital market. This initiative aims to broaden public access to gold investment instruments through the capital market and strengthen collaboration among stakeholders in the bullion ecosystem.

The ETF is designed as an investment vehicle traded on the Indonesia Stock Exchange (BEI), with physical gold as its underlying asset. PT Pegadaian (Persero) plays a pivotal role as the underlying provider for the ETF through its Electronic Gold Receipt (EGR), which serves as a digital representation of physical gold. One gram of gold is equivalent to 1,000 EGRs, allowing investors to hold gold in a more accessible format.

Damar Latri Setiawan, President Director of Pegadaian, stated that the introduction of the Gold ETF is a significant milestone in the development of Indonesia's gold ecosystem. He noted that the collaboration between bullion industry players and the capital market opens up broader opportunities for the public to access gold investments.

“The introduction of the Gold ETF is a significant milestone in the development of Indonesia's gold ecosystem.”Damar Latri Setiawan, President Director of Pegadaian

The development of the Gold ETF has been a collaborative effort involving various stakeholders, beginning with the initiative to establish the ETF in 2024, led by the BEI and the Financial Services Authority (OJK). In 2025, Pegadaian signed a memorandum of understanding with KSEI (Central Securities Depository) to prepare for the operational launch of the Gold ETF.

Vice Minister of Finance Juda Agung emphasized the importance of the Gold ETF in expanding investment choices and deepening the financial market to compete not only regionally but also globally. He noted that global interest in gold-based ETFs is rising, with assets reaching approximately $526 billion in 2025.

“What we are doing today is not just adding a product, but expanding investment options and deepening our financial market.”Juda Agung, Vice Minister of Finance

Friderica Widyasari Dewi, Chairperson of OJK, highlighted that the Gold ETF has received certification for compliance with Sharia principles from the Indonesian Ulema Council (MUI), making it a viable investment alternative for Muslim communities. This aspect was particularly emphasized in Indonesian coverage, which framed the ETF as a significant step towards inclusivity in investment options for the nation's predominantly Muslim population.

In contrast, some international perspectives have focused more on the ETF's potential to attract foreign investment and enhance Indonesia's position in the global gold market. For instance, while local outlets celebrated the ETF as a means to democratize access to gold, they also pointed out the challenges ahead, particularly in terms of investor education and market volatility.

Widyasari Dewi mentioned that the Gold ETF is a safe haven investment, especially during times of market volatility. This sentiment was echoed in local discussions, where several users on social media expressed optimism about the ETF's potential to stabilize investments during economic uncertainties.

“This Gold ETF is a safe haven investment, especially during times of market volatility.”Friderica Widyasari Dewi, Chairperson of OJK

Indonesian media also reported on the economic implications of the ETF, suggesting that it could bolster the national economy by integrating the strengths of the bullion industry and the capital market. This framing contrasts with international coverage, which has focused on the ETF's role in attracting foreign capital and enhancing Indonesia's global market position.

The launch of the Gold ETF is expected to enhance the national gold investment ecosystem by integrating the strengths of the bullion industry and the capital market. Pegadaian's role as the underlying asset provider through EGR is seen as a tangible expression of synergy in building a more integrated, transparent, and accessible gold ecosystem for the public.

During the launch, various stakeholders, including members of the OJK, the Vice Minister of Finance, and representatives from investment management firms, were present to witness this historic moment in Indonesia's investment landscape. The event was marked by a sense of optimism, with local media framing it as a turning point for Indonesia's capital markets.