Indonesia's exchange lists its first Shariah-compliant gold ETFs

Five Indonesian asset managers listed Shariah-compliant, gold-backed ETFs on the Indonesia Stock Exchange on August 10, under a fatwa from the National Sharia Board of the Indonesian Ulema Council (DSN-MUI). Each unit is backed by physical gold held via Electronic Gold Receipts at the central depository, giving retail investors exchange-traded exposure to gold without the custody problems of holding bullion directly and without structures a shariah screen would flag. The product itself is unremarkable financial engineering; what is notable is the regulatory sequencing — fatwa, then depository infrastructure, then a five-manager retail launch on the same day — which is what turns an Islamic-finance instrument from a boutique offering into ordinary market plumbing available to any retail investor with a brokerage account.

This is a QeRN summary by Ahmed Qerni. Read the original at IDN Financials: https://www.idnfinancials.com/news/67217/idx-launches-indonesias-first-five-shariah-compliant-gold-based-etfs.