Regulations
Authorities launched the first exchange-traded funds (ETFs) backed by physical gold on Aug. 10.
An employee shows two bars of gold produced by state-owned diversified mining company PT Aneka Tambang (Antam). (Kompas.com/Garry Andrew Lotulung)
The government and financial authorities have rolled out new initiatives aimed at integrating gold into the financial market to expand the country’s bullion ecosystem. While the push to promote gold investment could help bring the vast amount of physical gold held through private ownership into the financial system, analysts have warned that it risks diverting capital from other productive instruments.
The latest initiative came with the establishment of the Indonesia Bullion Market Association (IBMA), which is described as a “strategic organization” to help integrate and deepen the country’s bullion market.
