Jakarta. Gold has long been one of Indonesia’s most widely recognized investment options. Beyond being relatively easy to understand, gold is often used as an instrument to preserve asset value, particularly during periods of economic uncertainty.

Investors can now also gain exposure to gold through the capital market with the introduction of Gold Exchange-Traded Funds (ETFs). Gold ETFs allow investors to gain exposure to movements in gold prices through trading on the Indonesia Stock Exchange (IDX), without having to directly purchase or store physical gold.

Globally, Gold ETFs are not a new investment product and have long been traded on stock exchanges around the world as an alternative way to invest in gold. Their introduction in Indonesia expands investment choices by combining the characteristics of gold investment with the convenience of capital market trading.

Unlike digital gold trading services, Gold ETFs are mutual funds whose units are traded on the IDX. Investors can buy and sell them through securities companies during stock exchange trading hours. To invest in a Gold ETF, investors only need to have a securities account with a securities company.

To simplify, funds collected from investors are managed by an investment manager and invested primarily in gold-based assets in accordance with applicable regulations. As a result, the value of a Gold ETF generally follows movements in gold prices. When gold prices rise, the value of a Gold ETF may also increase. Conversely, its value may decline when gold prices fall.

Gold ETFs offer investors the convenience of gaining exposure to gold prices without having to own and store physical gold directly. Investors therefore do not need to consider storage requirements or the risk of losing physical gold while still gaining exposure to movements in gold prices through a product traded on the Exchange.

IDX Acting Head of Business Development Division 2 Edwin Hartanto said the introduction of Gold ETFs forms part of the Exchange's efforts to provide increasingly diverse investment options while supporting the deepening of Indonesia's capital market.

“Through Gold ETFs, the public can invest in gold conveniently through the capital market. We hope more people will recognize that investment options on the Exchange are not limited to stocks, but also include various other instruments that can be tailored to individual needs,” Edwin said.

“Gold ETFs are expected to become an investment alternative that is easily accessible to the public, providing exposure to movements in gold prices through a transparent and efficient trading mechanism within Indonesia's capital market ecosystem,” he added. “The introduction of this product also marks an important step in broadening investment choices for the public while supporting the deepening of the national financial market.”

In addition to their convenience, Gold ETFs offer transparency as their prices are formed through trading on the Exchange and can be monitored directly during trading hours. Investors can also buy and sell Gold ETFs in real time according to market conditions.

The products can also serve as an option for portfolio diversification, allowing investors to spread their investments across different types of assets rather than relying on a single instrument. This can be relevant because gold prices may move differently from other investment instruments under certain market conditions.

For investors seeking investment products that comply with sharia principles, Gold ETFs can also be an option. The products are issued based on sharia principles in accordance with DSN-MUI Fatwa No. 163/DSN-MUI/VIII/2025 on Sharia Gold ETFs.

Under the provisions, each unit of participation in a Sharia Gold ETF is backed by physical gold held in dedicated storage, ensuring compliance with sharia principles.

The development of Gold ETFs has also been supported by Financial Services Authority (OJK) regulations through OJK Regulation (POJK) No. 2 of 2026. The regulation paved the way for the issuance of Gold ETFs in Indonesia and provides a legal foundation for the development of the products.

This reflects the industry's positive response to the introduction of Gold ETFs as a new investment option for the public.

Despite the convenience they offer, Gold ETFs remain investment instruments whose value follows movements in gold prices. Investors should therefore understand the characteristics of the product, their investment objectives, and their risk profile before making an investment decision.

Investors can currently choose from five Gold ETF products available in Indonesia:

Premier ETF Gold Sharia Indonesia (XGLD), issued by Indo Premier Investment Management; Trimegah Syariah ETF Emas (XTRA), issued by Trimegah Asset Management; Mandiri ETF Emas (XMES), issued by Mandiri Manajemen Investasi; BRI MI Gold ETF Syariah (XDES), issued by BRI Manajemen Investasi; and Syailendra ETF Sharia Gold (XSGO), issued by Syailendra Capital.

The introduction of Gold ETFs reflects the continued development of Indonesia's capital market, which is offering a growing range of investment options that can be tailored to the public's needs.

Investors can now look beyond stocks and gain exposure to gold prices through transparent and efficient trading mechanisms on the Exchange.

Want to learn more about Gold ETFs and other investment options in Indonesia's capital market? Visit the https://www.idx.co.id/id/produk/exchange-traded-fund-etf/ or follow the official social media channels of the Indonesia Stock Exchange for the latest investment information and educational content.

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