OJK and BEI Finalize Gold ETF Main Rules in Capital Market

The government will soon issue new regulations for the Gold Exchange Traded Fund (“ETF”) instrument in developing capital market investment in Indonesia. The Business Development Advisor of Indonesia Stock Exchange (Bursa Efek Indonesia – “BEI”) Poltak Hotradero revealed that the cross-sector regulatory study related to Gold ETF has been completed after evaluating the potential benefits and risks of this instrument for the national financial market.

"The regulations will be available later in the form of a Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) tinggal nunggu terbit saja,” just waiting for it to be issued," Poltak told Hukumonline.

On the other hand, OJK has allowed insurance and pension fund players to invest their managed funds in the form of gold in accordance with Regulation of the OJK No. 71/POJK.05/2016 on the Financial Health of Insurance Companies and Reinsurance Companies, which has been amended several times, most recently by Regulation of the OJK No. 5 of 2023 (collectively referred to as “POJK 71/2016”). Thus, the Gold ETF instrument can be an alternative investment option for the insurance industry and pension funds amidst the volatile stock market trend.

"So later people can buy and liquidate gold because its value is stable and tends to increase, so it can be fractional compared to stock products or other investments," he concluded.