Indonesia Launches Sharia-Compliant Gold ETF

The Islamic Information
Indonesia Launches Sharia-Compliant Gold ETF

Indonesia’s OJK and stock exchange operators launched a Sharia-compliant Gold ETF on Monday in Jakarta
The product is certified under a fatwa from the National Sharia Council of the Indonesian Ulema Council (DSN-MUI)
Gold ownership is recorded digitally through Electronic Gold Receipts (EGR) at the Indonesian Central Securities Depository (KSEI)

Indonesia’s Financial Services Authority (OJK), together with stock exchange operators, introduced a new Sharia-compliant Gold Exchange-Traded Fund on Monday in Jakarta.

The product gives investors a way to track gold prices through the Indonesia Stock Exchange (IDX) instead of buying and storing physical gold.

OJK Board of Commissioners Chairwoman Friderica Widyasari Dewi called the ETF launch a quick win within the authority’s eight action plans, describing it as part of a broader push to grow the country’s bullion market.

How the Gold ETF Works

The ETF follows Islamic finance principles under a fatwa from the National Sharia Council of the Indonesian Ulema Council (DSN-MUI).

According to KSEI President Director Samsul Hidayat, the fund uses physical gold as its underlying asset. Ownership is tracked digitally through Electronic Gold Receipts (EGR) held at KSEI, while investors buy and sell participation units directly on the IDX.

Linking Physical Gold to Capital Markets

Hidayat said the ETF launch reflects a hope that the capital market will grow and support the Golden Indonesia 2045 vision.

He added that the product connects physical commodities with the formal capital market, giving local investors another option beyond traditional stocks and bonds.

Indonesia Launches Sharia-Compliant Gold ETF
Maisah.