IDX To Launch Gold ETF In 2025

, 27 Oct 2024

By ferry@insightinnews.com

Bursa Efek Indonesia (jakarta stock exchange) is set to introduce a new product, specifically an Exchange Traded Fund (ETF) focused on gold, which is anticipated to be available as early as 2025.

"The gold ETF is expected to serve as an investment alternative for investors interested in gold-based products, with our target set for 2025 and 2026," stated Iman Rachman, the President Director of BEI, during the Press Conference for the Extraordinary General Meeting of Shareholders on Wednesday, October 23, 2024.

For context, a gold ETF is an investment instrument that operates like a mutual fund traded on the stock exchange, primarily concentrating on gold assets. The pricing of this product will align with the fluctuations in gold market prices.

In addition to the gold ETF, several new products are in the development pipeline for BEI in 2025.

These include intraday short selling, the expansion of underlying single stock futures, updates to trading and surveillance systems, and the development of trading systems for PSP bonds.

BEI is also working on implementing SPPA for REPO transactions, enhancing stock liquidity providers, developing foreign index futures, and finally, the implementation of a non-cancellation period.

This plan is an integral part of the vision of the Indonesia Stock Exchange (BEI) to evolve into a multi-asset class exchange. Throughout 2024, BEI, in collaboration with the Self-Regulatory Organization (SRO), the Financial Services Authority (OJK), and all other capital market stakeholders, has introduced several products.

Among these initiatives are the implementation of the Improved Trading Mechanism for the Alternative Market Organizer System (SPPA) on February 19, 2024, the launch of the Special Monitoring Board Full Periodic Call Auction on March 25, 2024, and the introduction of the IDX Cyclical Economy 30 Index.

Additionally, BEI conducted a soft launch of the Single Stock Futures (SSF) product, coinciding with the 47th anniversary of the reactivation of the Indonesian capital market on August 12, 2024. On September 2, 2024, BEI also unveiled the IDX-Infovesta Multi-Factor 28 Index.

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