The Indonesian government is studying the feasibility of providing tax breaks for gold exchange-traded fund issuers sought by the Financial Services Authority, local news website Tempo English reports, citing top officials.
“We are requesting several incentives for new products in the financial services sector, such as gold ETFs and others,” Friderica Widyasari Dewi, a commissioner at the financial regulator, known locally as OJK, is quoted as saying in the report on July 16.
Airlangga Hartarto, coordinating minister at the Ministry of Economic Affairs, is cited as saying that the ministry is studying the feasibility of various tax incentives for issuers of gold ETFs following the OJK’s request.
“Trading of gold ETFs differs from conventional gold trading because it does not involve physical commodities. Trading of gold ETFs involves non-delivery assets, there are no physical goods. So, it needs to be accommodated, including in terms of taxation,” he says.
There are no gold ETFs currently listed on the Indonesian stock exchange. The OJK published a framework for the funds in January.
Spokespersons for the economic affairs ministry and OJK did not immediately respond to questions from Asia Asset Management.
