INVESTMENT GOLD: Pension funds ready shopping, there is no spot market

INVESTMENT GOLD: Pension funds ready shopping, there is no spot market -

JAKARTA: The desire to expand the portfolio of pension fund investments in gold collided fundamental problem, namely the lack of precious metals spot market in Indonesia.

Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) is difficult to issue a permit for the expansion of investment in gold when the spot market is not met.

Dumoly F. Pardede, Head of Pension Fund Bapepam-LK, said the gold market has clear standards in Indonesia, only on the commodity exchange futures trading system.

"Unfortunately, until now the Pension Fund may not invest in futures contracts for assets is calculated in real terms, not calculated by the acceptance in the future," he said on Monday (1/10).

Beyond that, he continued, there is no spot market gold has clear. This can be seen from a variety of gold circulating in the community had higher levels of content and different colors.

The PT Aneka Tambang (Antam), which produces the precious metal to a high standard, also can not be used as a reference only. "Because of Antam's not a market, he's just a manufacturer and seller of gold. If we make Antam as the market could fall another gold trader," he said.

Dumoly add authority to establish the gold spot market rather than be at Bapepam-LK, but the Ministry of Commerce. On that basis, Bapepam-LK can not ensure to issue licenses for pension funds to invest in gold.

Previously, the Indonesian Association of Pension Funds (ADPI) held a seminar to discuss alternative investments, including gold in the portfolio. Djoni Rolindrawan, Chairman ADPI, expect regulators to tap permission for Pension Fund can invest in gold 5% to 10% of the total portfolio.

According to him, has the advantage of high gold as a long term investment. In addition, risk is also scalable so that it can be anticipated "But we understand that gold does not have a multiplier effect for the economy because it just kept it," he said. (Faa)