Indonesia Strengthens Gold Industry with Gold ETF Initiative

RRI.CO.ID, Jakarta – Indonesia continues to expand its role in the gold industry, with the development of gold Exchange‑Traded Funds (ETFs) expected to strengthen the investment ecosystem and boost the country’s competitiveness amid global uncertainty.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the development of gold investment instruments must be carried out comprehensively, from the mining sector to public use of gold.

“Therefore, the gold ETF is also a fundamental initiative launched by the Financial Services Authority (OJK),” Minister Airlangga said at the 2026 General Assembly of the Indonesian Issuers Association in Jakarta on Tuesday, August 11, 2026, as quoted by Antara.

He said the government is promoting the strengthening of the upstream sector through the mining industry, while the downstream sector includes the use of gold for jewelry and long‑term investment. This approach is expected to support sustainable growth across the national gold industry chain.

Minister Airlangga noted significant progress following the government’s introduction of a bullion bank. When launched, state‑owned pawnshop company Pegadaian managed around 70 metric tons of gold, a figure that has now increased to about 153 metric tons.

“Those 153 metric tons of gold are valued at around USD 20 billion, whereas India’s ETFs total only USD 17–18 billion. So this is our potential to outperform various countries, especially since Singapore used to be ahead of us. Now, with the bullion bank in place, they’ve been surpassed,” Minister Airlangga said.

He added that gold remains attractive as a safe‑haven asset amid global economic uncertainty, and public understanding of gold investment continues to grow through Pegadaian’s services. ***