Indonesia’s Gold Exchange Traded Fund Could Exceed India and Singapore

Jakarta: Coordinating Minister for Economic Affairs Airlangga Hartanto is optimistic that the new instrument, Gold Exchange Traded Fund (ETF) Indonesia is capable to compete the market of India and Singapore in a short pace of time.

That optimism is supported by the potential of national physical gold reserves in PT Pegadaian which reaches 153 ton or equivalent to USD20 billion.

“The amount of gold in Pegadaian is 153 ton (it is equivalent to) USD20 billion. So actually we can overtake India in a short pace of time. So we can exceed Singapore in a short period of time," stated Airlangga in IDX (BEI) Building, Jakarta, Monday, 10 August 2026.

To urge the deepening of the commodity based financial sector, Airlangga referred to the history of Vereenigde Oostindische Compagnie (VOC) as a public company that was mentioned as the first listed company in the world.

According to Airlangga, the market capitalisation of VOC market that reached USD 7-8 trillion if counted based on the current market was from commodity trade in Nusantara.

“If we look based on history, our stock exchange was first (established) by the Dutch. If we remember VOC was the first publicly listed company in the world and their business field was commodity. It meant that based on Indonesian commodity for three centuries. So now we are already independent, of course (we) hope by the new ETF product we will continue strengthening to deepen the financial sector,” he explained.

ATF Bank Being An Alternative for Nonbank Financial Industry

Airlangga added that gold ETF also could be an alternative for nonbank financial industry, such as insurance company, that had a limitation on direct investment in physical gold and bullion.

To urge the transaction volume, the government is reviewing tax treatment of Electronic Gold Receipt (EGR), including Value Added Tax (VaT) Income Tax (PPh) article 22.

“Of course we have talked with the Vice Finance Minister and General Director about the treatment of Value Added Tax (VaT) Income Tax (PPh) 22 towards EGR transaction. It is hoped that it can increase transaction and be equal with other transactions, especially the ones in the stock exchange,” said Airlangga.

(Khairunissa Auliya)