- Indonesia’s DGT is reviewing a proposal for a final tax on gold ETF trades, but the Ministry of Finance has not approved it yet.
- Officials say ETFs lack specific income-tax and VAT rules, and the current Article 22 system is non-final and later creditable.
- A securities-style option remains possible, including possible income-tax and VAT exemptions, if ministers approve the framework.
Indonesia’s DGT is reviewing a proposal to replace the current withholding approach for gold exchange-traded funds with a tax collected on transactions. The proposal remains before the Ministry of Finance, which has not approved an implementing rule or set a start date as of August 24, 2026.
Inge Diana Rismawanti, Director of Tax Extension, Service and Public Relations, said the authority is collecting input because ETFs do not yet have dedicated income-tax or value-added-tax provisions.
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“Indeed, up to this point there are no tax provisions relating to ETFs, whether from the income tax or VAT perspective.”
Rismawanti also explained why officials are considering a different collection method for the funds. ETF trades take place in real time, while the existing Article 22 system is non-final and can later be credited.
“Article 22 income tax is non-final. However, given that ETF transactions are real-time in nature, a final income tax has been proposed. This is still being reviewed at the Ministry of Finance.”
The result is an unresolved choice between two approaches. One would apply a final tax to gold ETF transactions. The other would place the products closer to securities and potentially remove tax charges on trades.
The ministry must approve a design already completed inside the tax authority
Bimo Wijayanto, Director General of Taxes, said on August 10, 2026 that the agency had completed its technical formulation. The government still needs to coordinate with the Directorate General of Economic and Fiscal Strategy and obtain approval from Minister of Finance Purbaya Yudhi Sadewa.
The internal work is finished. The policy decision is not.
Bimo described the remaining process in a separate statement:
“The technical discussions at the DGT are final, but we still need to coordinate with the Director General of SEF and the Minister of Finance.”
The Directorate General of Economic and Fiscal Strategy is referred to in the research as DJSEF. Coordination with that body and other ministries remains part of the approval path before any rule can take effect.
Airlangga Hartarto, Coordinating Minister for Economic Affairs, has also asked the finance ministry to prepare tax rules covering gold ETFs and electronic gold receipt transactions. He said he discussed the issue with Deputy Minister of Finance Juda Agung and Wijayanto.
“We have just spoken with the Deputy Minister of Finance [Juda Agung] and the Director General [of Taxes, Bimo Wijayanto] regarding the VAT and Article 22 Income Tax treatment of EGR transactions. The hope is that this can be placed on an equal footing with other transactions.”
A securities-style exemption remains on the table
The proposed transaction tax is not the only route under consideration. Officials are also examining whether gold ETFs should receive treatment closer to securities, including possible exemptions from income tax and VAT.
Wijayanto said that approach could be appropriate, but tied it to the same coordination process.
“Technically, [gold ETFs] should be able to be treated on a par with securities and have their income tax and VAT exempt. However, we must first coordinate with the Director General of SEF and report to the Minister of Finance.”
That option would differ from a tax collected on each trade. It would also address the VAT question, which remains open alongside the income-tax issue.
| Policy route | Treatment under discussion | Reason officials are considering it |
|---|---|---|
| Final tax model | A final tax on gold ETF transactions | The trades occur in real time |
| Existing withholding framework | Non-final tax that can be credited later | It reflects the current Article 22 structure |
| Securities-style model | Possible income-tax and VAT exemption | Gold ETFs could be aligned with capital-market products |
No option has yet become law. The ministry’s approval will determine whether the government adopts one model or revises the proposal.
Electronic gold receipts sit beneath the wider gold-market plan
The ETF question is connected to electronic gold receipts, or EGRs. The government is preparing tax policy for those instruments because they serve as the underlying asset for gold ETFs.
The work forms part of a broader effort to develop a gold banking and bullion ecosystem. Officials are considering how digital claims on gold should fit within the tax system while the government builds rules for the related market.
Airlangga said the ministry was still examining the issue.
“We are studying this as well.”
The policy debate therefore covers more than one product. It includes the tax treatment of ETF trading, the VAT position for related instruments, and the treatment of EGR transactions.
Market and industry commentary cited in the research has focused on making the products workable during real-time trading. It has also called for tax treatment consistent with existing capital-market products.
The timeline shows a completed draft but no effective date
Officials have repeated the same distinction throughout August: technical work has advanced, while the legal decision remains pending.
On August 10, 2026, Airlangga said the government was discussing VAT and withholding-tax treatment for EGR and gold ETF-related transactions. That day, Wijayanto said the tax authority’s technical work had reached its final stage, subject to coordination and ministerial approval.
On August 21, 2026, Rismawanti reiterated that ETFs still lacked specific tax rules and that officials had proposed a final tax because of the products’ real-time nature.
On August 24, 2026, she again said the matter was still being reviewed at the Ministry of Finance. The latest position leaves the proposed model under discussion, with no formal regulation or effective date announced.
The next decision point is approval by Purbaya Yudhi Sadewa after the tax authority completes coordination with DJSEF and the other ministries involved. Until then, existing rules remain the reference point for transactions while officials work on the framework for gold ETFs and EGRs.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
