Gold ETF Could Become a New Investment Choice as Regulations Are Prepared
Bahana TCW Investment Management believes the investment world is currently undergoing an interesting shift in paradigm. In the past, owning gold was closely associated with storing physical gold bars in safes or hiding jewelry at home. However, the digital era has transformed how investors access gold, making it far more efficient and accessible.
Amid ongoing global market dynamics, Gold Exchange Traded Funds (Gold ETFs) are emerging as a smart and essential instrument for modern investment portfolios.
Gold Price Rally Strengthens Investor Interest
Since 2025, the public has witnessed a significant surge in global gold prices. According to Bloomberg data, gold prices surged by 64.52% throughout 2025, highlighting the metal’s strong appeal as a safe-haven asset.
Danica Adhitama, Marketing Director of Bahana TCW Investment Management, explained that the rise in gold prices has been largely driven by prolonged geopolitical uncertainty and the growing strategy of central banks worldwide to strengthen their foreign exchange reserves with precious metals.
Global central banks reportedly added 254 tons of gold to their reserves during 2025, marking the fourth-largest annual increase this century.
Gold Investment Trend Strengthens in Indonesia
In Indonesia, this global trend has been amplified significantly. More investors are realizing that gold is not merely jewelry but also a resilient investment instrument capable of withstanding economic volatility.
However, as physical gold prices continue to climb, new challenges arise for investors—particularly in finding ways to invest in gold with lower costs, higher security, and greater flexibility.
According to Danica, this is where Gold ETFs can offer a compelling solution.
“With the rising price of physical gold, investors are looking for safer, more efficient alternatives. Gold ETFs could become one of the new investment models in Indonesia that address these needs,” Danica said in an official statement on Monday (March 9, 2026).
What Is a Gold ETF?
Simply put, a Gold ETF is a mutual fund structured as a collective investment contract whose units are traded on the Indonesia Stock Exchange (IDX). Each ETF unit represents ownership of physical gold that is securely stored by a professional gold custodian.
Why Gold ETFs Are Attracting Investors
There are several key reasons why Gold ETFs are gaining strong interest among investors.
1. High Liquidity
One of the biggest challenges of owning physical gold is the lengthy buying and selling process. Investors usually need to visit gold shops or bullion boutiques, verify gold purity, and negotiate buyback prices.
Gold ETFs eliminate these complications. Investors can buy or sell ETF units in real-time during stock exchange trading hours, allowing them to react quickly to market changes.
2. Cost Efficiency and Profit Potential
Many investors overlook the hidden costs of physical gold, such as wide buy-sell spreads, storage fees, and insurance costs.
Gold ETFs offer tighter spreads and greater cost efficiency. Gold price increases are directly reflected in the Net Asset Value (NAV) of the ETF transparently.
Investors also do not need to worry about safe deposit box costs or the risk of theft, since the physical gold backing the ETF is professionally stored and regulated by Indonesia’s Financial Services Authority (OJK), which is currently preparing ETF regulations expected in the first half of 2026.
3. Transparency
Trust is a critical element in any investment. Gold ETFs provide a level of transparency rarely found in traditional physical gold markets.
ETF prices move closely with international gold prices, and the physical gold underlying the ETF is regularly audited, ensuring that each ETF unit held by investors is fully backed by real gold.
Bright Outlook for Gold ETFs and Digital Gold
Looking ahead, the prospects for Gold ETFs and digital gold investments remain highly promising. Financial technology integration now allows investors to access the gold market directly from their smartphones.
Danica emphasized that the Indonesian government and regulators continue to support the development of capital markets through innovative instruments like Gold ETFs. For retail investors, this presents an opportunity to diversify their portfolios with affordable investment amounts.
“Investors no longer need tens of millions of rupiah to buy a 10-gram gold bar. With ETFs, investments can start from smaller units that represent a fraction of gold while offering similar growth potential,” she explained.
Bahana TCW Preparing Gold ETF Product
Responding to the growing demand for this investment product, Bahana TCW Investment Management has partnered with several strategic institutions to develop a Gold ETF product for Indonesian investors.
The product is planned to be launched in Indonesian Rupiah (IDR) denomination and will also comply with Sharia investment principles, making it accessible to a wider range of investors in Indonesia.