Sharia Shares: Safe Investment Based on Islamic Principles in the Indonesian Capital Market

Sharia Shares: Maintaining Investment with Islamic Principles

Jakarta - In the midst of the rapid development of the Indonesian capital market, sharia shares are present as an investment alternative that combines financial aspects with sharia values. Sharia shares are securities in the form of shares that do not conflict with sharia principles, thus providing opportunities for investors who want to invest without violating the provisions of the Islamic religion.

There are two types of sharia shares recognized in the Indonesian capital market. First, shares listed as sharia shares by issuers or sharia public companies based on Financial Services Authority (OJK) regulation no. 17/POJK.04/2015 concerning Issuance and Requirements for Sharia Securities in the form of Shares by Sharia Issuers or Sharia Public Companies. Second, shares that meet the sharia share selection criteria based on OJK regulation Number 35/POJK.04/2017 concerning Criteria and Issuance of the Sharia Securities List.

All these sharia shares, whether listed on the Indonesia Stock Exchange (BEI) or not, are included in the Sharia Securities List (DES) which is published by the OJK periodically every May and November. This process ensures that the shares remain compliant with strict sharia principles.

The selection criteria applied by the OJK are quite strict to ensure the integrity of sharia shares. Issuers may not be involved in business activities that are contrary to sharia, such as gambling, trading that is not accompanied by the delivery of goods or services, ribawi financial services, buying and selling risks that contain elements of uncertainty (gharar) or gambling (maisir), as well as production, distribution or trade in illicit goods and services. Apart from that, issuers are also prohibited from carrying out transactions that contain elements of bribery.

From a financial perspective, sharia share issuers must meet certain ratios. Total interest-based debt may not exceed 45% of total assets, and total interest income and other non-halal income may not exceed 10% of total business income and other income.

With sharia shares, investors have the choice to invest while still adhering to sharia principles. This provides opportunities for those who want to gain financial profits without violating religious teachings, as well as encouraging more inclusive and sustainable capital market growth.

Sharia shares are not just an investment instrument, but also a commitment to ethics and moral responsibility in doing business. Through strict regulations and consistent supervision, the Islamic capital market in Indonesia continues to develop, offering security and compliance for investors who wish to invest ethically.