Jakarta. The Indonesia Commodity & Derivatives Exchange (ICDX) expects that its digital gold market trading will reach 25 million grams by the end of 2025.

ICDX has witnessed 20 million grams of gold traded on its platform so far this year as of October. The transaction volume had reached 23 million grams throughout 2024, marking a 5.3 million increase compared to the previous year.

"From this growth trend, we see two factors worth examining. First, we see a growing interest in digital gold trading. This is understandable, as digital gold trading offers flexibility and convenience for people to purchase gold digitally," ICDX President Director Fajar Wibhiyadi said on Tuesday.

"Next is the trust factor. Here, we see the public confidence in investing in this ecosystem. The key is, of course, security. In digital gold trading on the futures exchange, the traded gold is guaranteed to be physically present and stored by a depository institution," Fajar said.

The Commodity Futures Trading Regulatory Agency (Bappebti) has issued the regulations on digital gold trading on the futures exchange.  The exchange provides the trading platform, while the clearing house acts as a guarantee and transaction settlement institution. The depository institution plays a role in storing the digitally traded physical gold.

"Digital gold trading is part of the transformation of the commodity market towards a modern and efficient system," Bappebti head Tirta Karma Senjaya said.

"People can invest in gold without holding the physical gold through a digital platform. The system is built within an ecosystem that ensures security and convenience for the public. People can easily trade in real time. Although conducted digitally, the physical gold must be securely stored with a storage facility," Tirta said.