Government Reviews Tax Treatment of EGR Transactions

The government is considering adjustments to the tax treatment of Electronic Gold Receipts (“EGR”), which are part of the gold-based Exchange-Traded Fund (“ETF”) ecosystem. This policy aims to ensure that tax considerations do not hinder the development of gold-based investment instruments.

“This innovative product is expected to serve as an investment alternative that combines the characteristics of gold, an asset widely recognized by the public, with a transparent and well-administered investment mechanism through the infrastructure already in place at KSEI,” said Samsul Hidayat, President Director of PT Kustodian Sentral Efek Indonesia (“KSEI”).

Meanwhile, the company has issued Rule of KSEI No. II-F (“Rule II-F”) – Decree of the Board of Directors of PT KSEI No. KEP-0043/DIR/KSEI/0726 of 2026 on the Registration of Electronic Gold Ownership Certificates (“EGR”) at KSEI. Under this regulation, EGR is defined as electronic proof of gold ownership issued based on the underlying physical gold holdings. The document also reinforces EGR transactions in accordance with Financial Services Authority (“OJK”) No. 2 Tahun 2026 on Mutual Funds in the Form of Collective Investment Contracts whose Participation Units are Traded on the Stock Exchange with Underlying Assets in the Form of Gold (“Regulation 2/2026”).