Government Eyes Tax Incentives for Gold ETFs
JAKARTA, DDTCNews - The government will examine a proposal from the Financial Services Authority (Otoritas Jasa Keuangan/OJK in Indonesian) concerning the granting of fiscal incentives for gold commodity trading without physical delivery, commonly known as non-delivery gold exchange traded funds (ETFs).
Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the proposal was submitted by the OJK to strengthen its role as regulator and supervisor of the financial sector, as stipulated under Law 4/2023, as amended by Law 4/2026 concerning the Development and Strengthening of the Financial Sector (Pengembangan dan Penguatan Sektor Keuangan/P2SK in Indonesian).
"With respect to the new P2SK regulations, relating to the OJK's subsequent mandates, including for the next stage, namely non-delivery gold ETF trading, fiscal incentives may well be required. We are studying this too," he stated, as quoted on Wednesday (15/7/2026).
On another note, a non-delivery (non-physical) gold ETF is an investment vehicle traded on a stock exchange that allows investors to gain exposure to gold price movements without having to store or hold physical gold.
Airlangga further explained that gold investment via the non-delivery ETF mechanism does not involve the physical delivery of traded gold. In line with this, he has left open the option of providing tax incentives to attract investor interest whilst simultaneously growing such investment products.
"Well, in the case o non-delivery gold ETF trading, there are no physical goods involved. As such, one of the plans is [incentives] from a taxation standpoint to make things easier," said the Coordinating Minister.
Beyond this, Airlangga noted that in his meeting with the Chairperson of the OJK Board of Commissioners, Friderica Widyasari Dewi, discussions also covered the role of the mineral commodity exchange in mineral price formation as well as changes to the exchange's ownership structure (demutualisation). He did not, however, elaborate on the details of those discussions.
"We then discussed the mandate for mineral price establishment or a mineral exchange and also spoke about stock exchange demutualisation. Under the P2SK Law, exchange demutualisation involves Danantara, Bank Indonesia and the Ministry of Finance [MoF]. The respective stakes will be determined later, and there is a roadmap in place," he added.
Overall, Airlangga stated that the various policy measures outlined above are aimed at deepening the domestic capital market whilst strengthening the OJK's role in the financial sector.
Separately, Chairperson of the OJK Board of Commissioners, Friderica Widyasari Dewi, said the authority had proposed the provision of incentives for new investment products in the financial services sector, including non-delivery gold ETFs.
Meanwhile, she revealed that plans for exchange demutualisation are still being drawn up. The technical arrangements for exchange demutualisation will subsequently be set out in an OJK Regulation, which is expected to be issued in September 2026.
"We are requesting a number of incentives for new products in the financial services sector, such as gold ETFs and others. We also provided an update on bullion developments as well as on several new initiatives, such as the exchange demutualisation plan, for which the POJK should, God willing, be finalised by September," Friderica elaborated. (dik)
