Jakarta, September 16th, 2021 - The Indonesia Commodity & Derivatives Exchange (ICDX) has received BAPPEBTI's approval as the organizer of the Digital Gold Physical Market. The approval was given by BAPPEBTI through Approval Letter No 01/Bappebti/SP-KBPF/09/2021. The same approval was also given to the Indonesia Clearing House (ICH), as a clearing and guarantee institution for transaction settlements in this Digital Gold Physical Market.
The implementation of this Digital Gold Physical Market is by the Regulation of the Minister of Trade No.119 of 2018 concerning General Policy on Trading of the Physical Digital Gold Market on the Futures Exchange, as well as BAPPEBTI Regulation No.13 of 2019 concerning Amendments to BAPPEBTI Regulation No.04 of 2019 concerning Technical Provisions for the Implementation of the Digital Gold Physical Market in Futures Exchange. Digital gold trading is a digital (physical) gold sale and purchase transaction, so transactions are based on the availability of physical gold as the basis for transactions.
“According to BAPPEBTI regulations, Digital Gold Traders must be registered with the Futures Exchange and Clearing House that has been approved by BAPPEBTI to hold the Digital Gold Physical Market. Thus, there will be integration between exchanges, clearinghouses, and digital gold traders which are expected to provide a sense of security and guarantee investor transactions, as well as a means of improving services for digital gold traders," said ICDX Vice President Membership, Yohanes F. Silaen.
Integration of exchanges, clearinghouses, and digital gold traders in the Digital Gold Physical Market as a form of commitment by market participants and relevant authorities to develop various conveniences and security in digital gold transactions. This integration is also an effort to mitigate risk by providing transaction transparency, so it is hoped that it will attract more investors and digital gold investment can continue to grow.
“As a digital gold trader who continues to be committed to providing the best service for users, we fully support the integration between exchanges, clearinghouses, and traders in the Digital Gold Physical Market ecosystem. Especially amid this pandemic, there is a trend of increasing public investment interest in digital-physical gold, which can be seen from our transactions which experienced an increase in Gross Merchandise Value (GMV) of up to 86% in the first half of 2021 compared to the previous year. Therefore, the entry of digital gold traders into the integration of the Digital Gold Physical Market will provide added value and be able to increase digital gold trading," said IndoGold Founder & CEO Amri Ngadiman.
"In addition to recording transactions, ICH will also be tasked with guaranteeing the availability of physical gold being traded. Previously, the physical gold will be tested for quality, and then the physical gold balance will be reported to the clearinghouse to ensure that the amount of gold being traded matches the physical amount. This process is expected to foster a sense of public trust in digital gold transactions,” said Head of Risk Management & Group Controller ICH, Yudhistira Mercianto.