OJK launches sharia gold ETF on Indonesia Stock Exchange
Investors can now gain gold price exposure through the exchange without buying or storing physical gold directly.
Otoritas Jasa Keuangan, together with Self Regulatory Organization, officially launched a gold exchange traded fund (ETF) investment instrument on the Bursa Efek Indonesia on Monday, coinciding with HUT Pasar Modal Indonesia. The product has received sharia compliance based on a fatwa from Dewan Syariah Nasional Majelis Ulama Indonesia. A gold ETF is a mutual fund traded on the exchange with gold as the underlying asset, allowing investors to track gold price movements without holding the physical metal. In this ecosystem, physical gold serves as the underlying asset, then is recorded as an Electronic Gold Receipt at KSEI before ETF units are traded on BEI. OJK said the launch is part of efforts to deepen the financial market and strengthen the national bullion ecosystem.